Annual compounding at a constant rate, with nothing added or withdrawn along the way.
Total value
₹15,52,924
- You invested
- ₹5,00,000
- Estimated returns
- ₹10,52,924
Year by year
How a lumpsum grows
FV = P × (1 + r)^t. One multiplication per year, applied to a balance that keeps getting bigger — which is why the curve on the chart bends upward rather than running straight.
The bend is the whole story of compounding. Over the first few years the line is nearly straight and the growth looks disappointing; the interesting part is entirely in the back half of the term. Drag the time period slider from 5 to 25 and watch where the value comes from.
Lumpsum or SIP?
If you already have the money and the horizon is long, the arithmetic favours investing it at once: money in the market earns for longer than money waiting to be invested. If putting it all in on one day would keep you awake, or if the market has run hard and you would not forgive yourself for buying the top, spreading it over some months costs a little expected return and buys a lot of sleep.
The honest answer is that the difference between the two is usually smaller than the difference between investing and not getting round to it.
Common questions
No — the figure is in future rupees. A ₹50 lakh corpus in 20 years does not buy what ₹50 lakh buys today. Run the number through the inflation calculator to see it in today's money.
Related calculators
SIP
Put in what you invest each month and the return you expect, and see what the SIP is worth at the end — split into the money you actually paid in and the growth on top.
CAGR
The single annual rate that would have taken you from where you started to where you ended. The fairest one-number summary of an investment's performance.
Fixed deposit
What a fixed deposit is worth at maturity, compounded quarterly the way banks actually post it.
Inflation
What today's rupee is worth later, and what today's expense costs later. The same arithmetic, pointed in both directions.