Is a lumpsum better than a SIP?

Neither is universally better; they suit different situations. Mathematically, if markets rise over the period, investing everything immediately wins because the money spends longer invested. In practice most people do not have a large sum available, and spreading entry across time reduces the impact of investing everything just before a fall. If you do have a lump sum and the timing worries you, some people phase it in over several months.

Why does the growth accelerate so much in later years?

Because each year’s return is calculated on a larger base. At 12%, the first year adds ₹12,000 to ₹1,00,000; the tenth year adds about ₹33,000 to the accumulated total. This is the whole mechanism of compounding, and it is why time invested matters more than almost anything else you control.

Can I use this for a fixed deposit?

For a rough figure, yes — but FDs usually compound quarterly rather than annually, so the Compound Interest calculator with quarterly compounding will be more accurate. FD interest is also taxable as income each year for most investors, which this model does not deduct.

Lumpsum Calculator

A lumpsum investment puts a single amount to work all at once. This projects what it could grow to at a return rate you choose, and shows how much of the result is growth rather than your original money.

Check the working

A worked example

A fixed case, for reference.

Take ₹1,00,000 invested for 10 years at an assumed 12% a year.

Convert the rate to a decimal
$r = \frac{12}{100} = 0.12$
Compound over ten years
$(1.12)^{10} = 3.105848$
Apply it to the amount
$1{,}00{,}000 \times 3.105848 = 3{,}10{,}584.82$

The ₹1,00,000 becomes ₹3,10,584.82 — a growth multiple of 3.11x, of which ₹2,10,584.82 is projected return. Note that more than half of that growth arrives in the final four years.

The formula

FV = P \times (1 + r)^{n}

Compound growth of a single amount, compounded once a year.

What each symbol means

FV: projected value at the end
P: the amount invested at the start
r: the assumed annual return, as a decimal
n: the number of years

What this assumes, and where it stops

Assumptions

The return is compounded once a year. A fund that compounds more often would finish slightly higher — the Compound Interest calculator shows by how much.
The return you enter is earned steadily, every month, for the whole tenure. Real markets do not behave this way — the same average delivered in a different order produces a different result.
The full amount is invested on day one and left untouched for the whole period.
No further money is added or withdrawn.

Limitations

Taxes are not modelled. Capital gains tax on redemption reduces what you actually receive.
Costs are not modelled: expense ratio, exit load, and any transaction charges all reduce real returns.
This is a projection from a fixed assumption, not a forecast. Returns vary year to year and can be negative for long stretches.
Investing a large sum at a single moment carries timing risk that this model cannot show: the same investment made six months earlier or later can produce a materially different outcome.

What this calculator does

Projects the value of a one-time investment over a chosen number of years.
Shows the growth multiple — how many times the original amount the projection reaches.
Displays the year-by-year path, which makes the acceleration of compounding visible.

Common questions

Different questions about the same money. These use the same conventions, so the numbers are comparable.

SIP Calculator
Project what a monthly SIP could grow to over time, and see how much of the total is your own contribution versus assumed returns.
Compound Interest Calculator
See how compounding frequency and time change an outcome, and why the last few years contribute the most.
CAGR Calculator
Work out the compound annual growth rate between a starting value and an ending value over a given period.