Quick answer
A lumpsum investment grows by compounding: FV = P × (1 + r)t. At 12% a year, ₹5 lakh becomes about ₹15.5 lakh in 10 years and ₹48.2 lakh in 20 years. At 12%, money roughly doubles every 6 years (Rule of 72: 72 ÷ 12 = 6).
Key takeaways
- Lumpsum works best when markets are fairly valued or you have a long horizon (7+ years).
- If you are worried about timing, move the lump sum into equity through an STP over 6–12 months.
- The Rule of 72 gives a quick estimate: 72 ÷ return rate = years to double.
Lumpsum formula
FV = P × (1 + r)t- P = amount invested
- r = annual return (decimal)
- t = years
Lumpsum returns table
| Return | 5 yrs | 10 yrs | 15 yrs | 20 yrs | 25 yrs |
|---|---|---|---|---|---|
| 8% p.a. | ₹1.47 L | ₹2.16 L | ₹3.17 L | ₹4.66 L | ₹6.85 L |
| 10% p.a. | ₹1.61 L | ₹2.59 L | ₹4.18 L | ₹6.73 L | ₹10.83 L |
| 12% p.a. | ₹1.76 L | ₹3.11 L | ₹5.47 L | ₹9.65 L | ₹17 L |
| 15% p.a. | ₹2.01 L | ₹4.05 L | ₹8.14 L | ₹16.37 L | ₹32.92 L |
Frequently asked questions
How much will ₹1 lakh become in 10 years?
At 12% a year, ₹1 lakh grows to about ₹3,10,585. At 8% it becomes ₹2,15,892.
Is lumpsum better than SIP?
Over long periods in a rising market, lumpsum usually ends higher because all the money is invested sooner. A SIP lowers timing risk. If you already have the money, many investors split it: part lumpsum, part STP.
What is absolute return vs CAGR?
Absolute return is the total percentage gain, whatever the time taken. CAGR is the steady yearly rate that would produce the same result. Use CAGR to compare investments held for different periods.
Sources & methodology
Formulas follow the standard methods used by Indian banks, fund houses and government schemes. Rates and tax rules were checked against official sources on 1 October 2026. Read our methodology.
This calculator gives an estimate for planning purposes. Actual returns, tax and eligibility depend on your situation and on product terms. It is not financial advice.