Lump Sum Investment Plans Calculator Online
Lump sum investment is one time investment wherein the investor makes investment in a lump sum amount and allows to generate compounding returns over a period of time. A lump sum calculator helps an investor to calculate the maturity value of the investments made over a period of time. The online lump sum investment plans calculator helps an individual to estimate the returns on the lump sum investment.
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What Is A Lump Sum Investment Plans Calculator?
A lump sum investment calculator is an online tool that helps an investor to calculate the returns on the lump sum investment for a certain period of time. Using the online calculator an investor can estimate the returns on the lump sum investment made based on certain factors such as amount of investment, estimated rate of return per annum and time period.
A lump sum investment calculator helps an investor to make an informed investment decision. Before investing your money, you can easily estimate the returns using this online calculator.
How Does A Lump Sum Calculator Work?
A lump sum 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 Lump Sum Investments
The value of the lump sum investment depends on the market performance of the investment plan. However, the lump sum investment calculator uses a unique to estimate returns on the lump sum investments. Below mentioned is the formula used to calculate returns on the lump sum 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.
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