Lumpsum Calculator

A lumpsum calculator calculates the estimated returns on the lump sum investment made. This online calculator, estimated the returns on investment on the basis amount of investment the investor wants to make, time period and estimated rate of interest on the investment. An investor needs to simply enter the above mentioned variable and the calculator will estimate the returns on investments made along with the total of investment.

Formula To Calculate Returns On Lumpsum Investments

The value of the lumpsum investment depends on the market performance of the investment plan. However, the lumpsum investment calculator uses a unique to estimate returns on the lumpsum investments. Below mentioned is the formula used to calculate returns on the lumpsum investment:

A = P (1 + r/n) ^ nt

The variables of the formula are as mentioned below:

A - Estimated returns

P - Present value of investment amount

r - Estimated rate of return in percentage

n - Number of compounded interests in a year

t - Total time period of investment

For example, if an investor wants to make an investment of Rs 2.5 Lakh with an estimated rate of returns of 6% for a duration of 2 years then the formula applied will be as follows:

A = 2,50,000(1+6%) ^ 2

A = 2,80,900

How To Use Lump Sum Investment Calculator?

It is very easy to calculate returns on lump sum investments using the online lump sum investment calculator tool. Below mentioned are the steps you can follow to use a lump sum investment calculator:

Step 1: Enter your investment amount in the calculator.

Step 2: Select the duration for which you want to invest.

Step 3: Choose your investment strategy i.e Conservative, Moderate or Aggressive.

How Does A Lump Sum Investment Calculator Help You?

A lump sum investment calculator is an effective tool that helps an investor to estimate their corpus. By simply entering the lump sum investment amount, total duration of the investment and the estimated rate of return, the investor can easily estimate the approximate value of their investments within a few minutes. Below mentioned are some advantages of using a lump sum investment calculator:

• This online tool is extremely useful and completely hass-free to use. The online premium calculator uses the formula to calculate the approximate returns on investment, so the investor does have to worry about understanding the formula while calculating the estimated rate of return on the investments.
• Online lump sum investment calculator, provides the estimated value of investment based on the variables entered within a matter of few seconds. However, it is very important to understand that the results estimated by this calculator are based on the variables the investor provides and do not take account of market volatility.
• This calculator helps the investor to estimate whether he/she can reach their financial goal or not.