Reverse Lumpsum Calculator

About Reverse Lumpsum Calculator

The Reverse Lumpsum Calculator helps you easily figure out how much you need to invest today (as a lumpsum) to reach a specific future goal. Whether it’s for retirement, a child’s education, or buying a dream home — this calculator tells you the exact amount to invest based on your expected returns and investment duration.

How to Use the Reverse Lumpsum Calculator?

• Enter the Final Target Amount you wish to achieve.
• Provide the expected Annual CAGR (%) based on your investment.
• Enter the Duration (in years) for which you want to stay invested.
• The calculator will instantly show you the Required Lumpsum Investment and the Total Gain.
• You can also download your results or share them with friends and family.

Features of this Calculator

• Instant calculation of required lumpsum investment.
• Beautiful visual chart showing investment growth.
• Option to download results as a CSV file.
• Share results easily via Email, WhatsApp, Facebook, and Twitter / X.
• Mobile-friendly and easy-to-use interface.

Formula Used

The calculator uses the reverse future value formula:

FV = P × (1 + r)n

Where:

• FV = Future Value (Target Amount)
• P = Present Value (Lumpsum Investment)
• r = CAGR (expected annual growth rate)
• n = Number of years

Re-arranged to calculate lumpsum investment (P):

P = FV / (1 + r)ⁿ

Example

If you want ₹1 Crore after 10 years, and you expect a CAGR of 12% annually:

The required lumpsum investment today would be approximately ₹32.2 lakh.

Try Calculator A2Z’s Compound Interest Calculator

Advantages of Lumpsum Investment

• Ideal for long-term wealth creation.
• Best suited when you have a big corpus ready to invest.
• Helps in reaching big financial goals faster.
• Beneficial during market corrections to invest at lower prices.

Limitations to Keep in Mind

• Market volatility can impact short-term performance.
• Requires discipline and long-term vision.
• Expected CAGR is an assumption — actual returns may vary.

Frequently Asked Questions (FAQs)

1. What is a Reverse Lumpsum Calculator?

It tells you how much you need to invest today (one-time) to reach a specific financial goal in the future.

2. Is this calculator free to use?

Yes, it’s 100% free for everyone.

3. Can I use it for retirement planning?

Absolutely! It’s very useful for retirement, education, travel, or any future goal.

4. What is CAGR?

CAGR stands for Compound Annual Growth Rate — an estimate of the average annual returns on your investment.

What is Lumpsum Investment?

Lumpsum investment means investing a large amount of money at one go, rather than investing small amounts regularly. It is a popular method for people who receive bonuses, windfalls, or have idle cash sitting in their savings account. Mutual Funds, Stocks, Bonds, or Real Estate are common avenues for lumpsum investing.

Benefits of Lumpsum Investing

• Potential for higher returns in the long term.
• Simple and easy process.
• Less tracking and monitoring are required compared to SIPs.
• Best suited for market corrections or when the market is undervalued.

Final Thoughts

The Reverse Lumpsum Calculator is an excellent tool for financial planning. It gives clarity about how much you need to invest today to reach your dreams tomorrow. Always remember — early investing combined with compounding can do wonders for your wealth creation journey.