Methodology
Lumpsum Calculator Methodology
Future value of a one-time investment under continuous (annual) compounding.
By Yadav PatleLast updated:
Formula
FV = P × (1 + r)^n
Variables
| Symbol | Name | Description |
|---|---|---|
| FV | Future Value | Final corpus. |
| P | Principal | One-time investment amount. |
| r | Annual rate of return | Decimal form (e.g. 12% → 0.12). |
| n | Years | Investment horizon in years. |
Worked example
₹5,00,000 lumpsum for 15 years at 12% p.a.: FV = 5,00,000 × (1.12)^15 ≈ ₹27,36,783.
Assumptions and limitations
Every model leaves something out. Here is what this calculator assumes, and what it does not model, so you can interpret the output honestly:
- Annual compounding. Most equity mutual funds approximate this when valued daily.
- Constant return rate. Real markets are volatile; sequence-of-returns risk is not modelled.
- No expense ratio, exit load or tax deduction.
Authoritative sources
Where the formula, rates, or framework come from:
Try it now
Plug in your own numbers in the Lumpsum Calculator and see the formula applied in real time.
This methodology page is for educational purposes only. Calculations are estimates; real-world results vary with taxes, fees, expense ratios, and market conditions. Yadav Patle is not a SEBI-registered investment adviser. For personalised advice, consult a registered adviser.