This lump sum calculator will help you determine the future value of a single investment over time.
Lumpsum Investment Calculator
How to use the Lumpsum Investment Calculator
To use the calculator, enter the principal amount of your investment, the annual interest rate, and the number of years you plan to invest. Press “Calculate” to see the future value of your investment.
How the Calculator Works
The calculator uses the formula for compound interest to compute the future value of a lumpsum investment. The formula is:
A = P (1 + r/n)^(nt)Where:
- A is the amount of money accumulated after n years, including interest.
- P is the principal amount (the initial amount of money).
- r is the annual interest rate (decimal).
- n is the number of times that interest is compounded per year.
- t is the time the money is invested for in years.
For the purpose of this calculator, it is assumed that interest is compounded once per year (n=1).
Limitations
This calculator assumes a fixed annual interest rate and does not account for taxes, inflation, or investment fees which could reduce the actual return on your investment. It is important to note that investments with higher returns may come with greater risk. Please use this calculator for general planning purposes only and consult with a financial professional before making investment decisions.