Learn/Calculators/Returns and compounding
Lumpsum calculator: one investment, compounded.
Invest once, let it compound. See the value, the gain and how many times the money multiplies.
- Formula shown
- Free, nothing stored
- Share your result as a link
- Value
- Invested
01How it works
In plain words.
A lumpsum earns a return on the whole amount from day one, and every year’s return then earns a return of its own. That second effect is compounding. The calculator applies the yearly return once a year for the number of years.
The formula
FV = P x (1 + r)^nMultiple = (1 + r)^nGain = FV - P02Worked example
The default numbers, by hand.
Rs 1 lakh at 12% for 10 years: 1.12^10 = 3.106, so the value is about Rs 3.11 lakh and the money has multiplied 3.1 times.
| Input | Value |
|---|---|
| Amount invested once | ₹1,00,000 |
| Expected return a year | 12% |
| Period | 10 years |
| Result | Value |
|---|---|
| Value after 10 years | ₹3.11 L |
| Invested once | ₹1.00 L |
| Gain | ₹2.11 L |
| Multiple of the money | 3.11x |
03Key concepts
What to know before you use it.
Compounding in one line
At 12% a year money roughly doubles every six years. Over 24 years that is four doublings, 16 times the money. The rule of 72 calculator shows the shortcut.
Lumpsum or SIP
A lumpsum is invested for longer, so at one constant return it always ends ahead of the same money spread over months. The comparison calculator shows the gap and explains when spreading can still be chosen.
Good to know
- Compare the result with the inflation calculator to see it in today’s rupees.
- The CAGR calculator works the other way: from a start and an end value back to the yearly rate.
04Assumptions
What the calculator assumes.
- One constant return, compounded once a year.
- No tax, fees or withdrawals.
05Questions
Asked about the Lumpsum calculator.
How is a lumpsum return calculated?
Future value = amount x (1 + yearly return)^years. Rs 1 lakh at 12% for 10 years becomes about Rs 3.11 lakh.
What is the difference between simple and compound return?
Simple return pays only on the original amount. Compound return also pays on past returns, which is why the curve bends upward.
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06Keep going
Learn the idea, see it applied.
More returns and compounding calculators
Education only, not investment advice. RupeeCase is a technology platform operated by QC Alpha Technologies Pvt Ltd; it is not a fund, a PMS or a SEBI registered investment adviser. Model returns are back tested and not a promise of future returns. Figures carry the date they were checked.