1. What is a Lumpsum Return Calculator?

Definition: This calculator computes the percentage return on a lump sum investment based on the principal amount and future value.

Purpose: It helps investors evaluate the performance of their lump sum investments over time.

2. How Does the Calculator Work?

The calculator uses the formula:

Where:

• Return — Investment return percentage
• FV — Future value of the investment ($)
• P — Principal lump sum amount ($)

Explanation: The formula calculates the percentage gain or loss by comparing the difference between future value and principal to the original investment.

3. Importance of Lumpsum Return Calculation

Details: Understanding investment returns helps in evaluating performance, comparing investment options, and making informed financial decisions.

4. Using the Calculator

Tips: Enter the future value and principal amount in dollars. Both values must be positive, with principal > 0.

5. Frequently Asked Questions (FAQ)

Q1: What is considered a good return?
A: This depends on the investment type and duration. Typically, 7-10% annual return is considered good for long-term stock investments.

Q2: Does this calculator account for time period?
A: No, this calculates total return regardless of time. For annualized returns, use our CAGR calculator.

Q3: What if my return is negative?
A: A negative return indicates your investment lost value compared to the principal amount.

Q4: Can I use this for mutual fund investments?
A: Yes, this works for any lump sum investment where you know the principal and current/future value.

Q5: How is this different from SIP returns?
A: SIP returns account for multiple investments over time, while this calculates return on a single lump sum investment.