Calculation Formula

This calculator uses the compound interest formula for lump sum investments:

FV = P × (1 + r)^n

Where:

• FV = Future Value
• P = Principal amount (initial lump sum)
• r = Annual rate of return (in decimal)
• n = Number of years invested

Investment Tips

• Choose an expected rate of return based on realistic historical performance of the asset class.
• Longer investment duration generally increases the benefits of compounding.
• Review and adjust your investments regularly based on market conditions and goals.
• Consider tax implications while planning lump sum investments.