When you are planning to invest money, you think of several ways. Since there are so many ways to invest money, sometimes it may get confusing in what way to invest money when you don’t have a proper plan regarding the investment. This can be made easy if you are aware of the returns, you will be getting on when you invest your money somewhere. Whether it is a SIP or lumpsum you can get the information on which one will be better with the help of a lumpsum calculator. 

Here the investor deposits money as a lump sum amount altogether and it is considered as the complete sum of money. It is a way to invest money and the calculator helps you in calculating the estimated returns on the investment period. The period can be of a different number of years.

A lumpsum calculator is a great tool as it uses a specific method to calculate the profitable income that you will be getting over a period. It uses a specific formula that is accurate. We would suggest you use the lumpsum calculator by 5paisa as it is the most accurate one and it is the one-stop destination for all your investment-related assistance that you would require while investing different amounts.

The 5paisa lumpsum calculator uses the following formula:

Estimated Returns = Present Value (1 + r/100) ^n

Sometimes, people get confuse SIP with the lumpsum investment method and those are different forms of investments. A lump sum, as the name suggests is the kind of investment where the investor has to put in a large amount of money beforehand and not do it every month whereas the SIP type of investment is the one where the investment is required regularly with specific time intervals. The amount invested with the SIP is relatively small than that of the lumpsum investment. There is no limit to the maximum amount a person can invest in a lump sum mutual fund.

Here is how you can calculate the lump sum amount on the calculator:

1. Select the amount you want to invest.
2. Select the investment period that will be in years.
3. Select the rate of return

You will get the total wealth you invest and also know the wealth gained on the amount of investment. The calculator is accurate and in this way you can plan your investment. The calculator is a great tool to understand the wealth you will be gaining on a long-term basis and the formula used is specific for this. All this can be completed in a matter of seconds.

Benefits of using 5paisa a calculator are:

1. It is quick and you will know the results in seconds.
2. Helps you plan your investment goals.
3. Easy for novice investors.
4. Helps the investors in achieving their targets.
5. Gives the perfect rate of return with inflation costs included.

Get registered with 5paisa today, to get the most accurate information for all your investment-related queries.