Lumpsum Calculator
Understanding Lumpsum Investment
A lumpsum calculator helps you determine the future value of a one-time investment over a given period, considering an expected rate of return.
Key Concepts:
- Initial Investment: The one-time amount invested at the beginning.
- Investment Period: The total duration over which your investment will grow, usually expressed in years.
- Expected Return: The annual rate of return you anticipate from your investment, typically represented as a percentage.
How it Works:
The calculator estimates the future value of your one-time investment, factoring in the compounded returns over the investment period.
Calculation Formula:
Future Value = P × (1 + r)^n
Where:
P
: Initial investment.r
: Annual return rate.n
: Number of years.