A Lumpsum Calculator helps you estimate the future value of a one-time investment based on the expected rate of return and investment duration.
How Lumpsum Investment is Calculated
A lumpsum investment refers to investing a one-time amount and allowing it to grow over time through the power of compounding.
Formula used for calculation:
FV = P × (1 + r)ⁿ
Where:
- P = Initial investment amount
- r = Expected annual rate of return (in decimal form)
- n = Investment duration (in years)
This calculator assumes that the investment grows at a constant annual rate and that returns are compounded once every year throughout the investment period.
Disclaimer: This Lumpsum Calculator is provided for educational and illustrative purposes only. The results displayed are estimates based on the information entered by the user.