Calculate how a one-time investment grows over time. Toggle inflation adjustment and choose compounding frequency to see real vs nominal returns.
Nominal vs Real Returns
Nominal return is the raw number your investment grows to, without considering inflation. If you invest $10,000 at 10% for 20 years, you get ~$67,275 nominally.
Real return adjusts for inflation. At 3% inflation, that $67,275 is only worth ~$37,243 in today's purchasing power. Real returns show what your money is actually worth.
Rule of 72: Divide 72 by your return rate to estimate how many years it takes to double your money. At 10% return, your money doubles every ~7.2 years.
Frequently Asked Questions
What is lump sum investment?+
A lump sum investment means investing a large amount of money all at once, rather than spreading it over time (which would be SIP/DCA). It works best when markets are low or when you receive a windfall like a bonus, inheritance, or property sale proceeds.
Is daily compounding better than monthly?+
Yes, but the difference is minimal at typical investment return rates. At 10% annual return, daily compounding gives ~10.516% effective rate vs monthly compounding's ~10.471%. The difference over 20 years on $10,000 is only a few hundred dollars.
Lump sum vs SIP — which is better?+
Historically, lump sum investing outperforms SIP/DCA about 65-70% of the time because markets trend upward. However, SIP reduces timing risk and is emotionally easier to commit to. If you have a large amount and markets aren't at historic highs, lump sum often wins.