Goal Lumpsum Calculator

Goal Lumpsum Calculator

Understanding Reverse Lumpsum

A reverse lumpsum calculator helps you determine the initial lumpsum investment required to reach a specific financial goal over a given period, considering an expected rate of return.

Key Concepts:

  • Target Amount: The final amount you want to achieve at the end of the investment period.
  • Investment Period: The total duration over which you will invest, usually expressed in years.
  • Expected Return: The annual rate of return you anticipate from your investments, typically represented as a percentage.

How it Works:

The calculator breaks down your financial goal (target amount) into the initial lumpsum investment required, factoring in the compounded returns over the investment period.

Calculation Formula:

Initial Investment = Target Amount / (1 + r)^n

Where:

  • r: Annual return rate.
  • n: Total number of years.