How to Calculate Lump Sum
Project growth of a one-time lump sum investment.
The Formula
FV = P × (1 + r)^tThe lump sum formula uses the mathematical relationship: FV = P × (1 + r)^t. Each variable in the formula represents a measurable quantity that affects the final result.
Step-by-Step Method
- 1Identify all input values needed for the lump sum calculation.
- 2Substitute your known values into the formula: FV = P × (1 + r)^t.
- 3Perform the arithmetic operations in the correct order (PEMDAS/BODMAS).
- 4Check that your result has the correct units and is within a reasonable range.
- 5Verify using the interactive Lump Sum Calculator to confirm your answer.
Related Topics
lump suminvestingcompound growth
Use the Interactive Calculator
Skip the manual math — get instant results with our free Lump Sum calculator.