Compound growth of a one-time investment over years.

Lump sum investing is the simple case: a one-time deposit that grows over time without additional contributions. Useful for modelling inheritances, redundancy payouts, bonus windfalls, or any single deposit. The math is pure compound interest without the annuity complications of regular contributions.

The power of lump sum compounding depends almost entirely on time horizon. 10,000 at 7% for 10 years becomes 19,672 (about 2x). Over 20 years it's 38,697 (nearly 4x). Over 30 years it's 76,123 (7.6x). The acceleration at longer horizons is the essence of compound growth — each year's growth happens on a larger base.

This is why starting early matters more than starting big. A 25-year-old investing 5,000 once and never adding more has 40 years of compound growth. At 7%, that 5,000 becomes roughly 75,000 by age 65. The same 5,000 invested at age 45 has only 20 years and becomes roughly 19,000. Same initial amount, same rate, different time — massively different outcome.

How to use it

Enter lump sum amount, expected annual return (7% historical equity average, 5% more conservative, 3% for cash), and years. The tool shows final balance and total interest earned.

What the result means

Final balance is what the lump sum becomes if returns match expectation. Interest earned (final minus principal) shows the growth contribution beyond the original amount. The ratio of interest to principal illustrates compound power — at long horizons, interest significantly exceeds the original deposit.

Projection tool. Actual returns vary. Not financial advice.

Run it with sensible defaults

Using lump sum amount of 10,000, annual return of 7%, years held of 20, the calculation works out to 38,696.84. Nudge the inputs toward your own situation and the output recalculates instantly. The defaults are meant as a starting point, not a recommendation.

The levers in this calculation

The inputs — Lump Sum Amount, Annual Return, and Years Held — do not pull with equal force. The rate and the time horizon usually dominate — compounding means a small change in either reshapes the final figure more than a similar shift in contribution size. Test this by doubling one input at a time.

How the math works

Standard compound interest with annual compounding. Final balance minus principal equals interest earned. The working is transparent — you can verify every step yourself in the formula section below. No black box, no opaque "proprietary model".

Turning the result into a plan

A projection is just a starting point. The real work is setting the monthly amount aside automatically so the saving happens before you can spend it. Most people who hit savings goals set up a standing order on payday; most who miss them rely on willpower at month-end.

What this doesn't capture

The calculation assumes a steady savings rate and a stable interest rate. Real saving journeys include emergencies, windfalls, and rate changes — especially in easy-access products. The figure is a direction of travel, not a guarantee.