$10,000 invested once for 20 years

A lump sum gets more time in the market, but results still depend on your return assumptions. Compare conservative, mid, and optimistic scenarios.

Open the Money Growth Calculator

How to model a lump sum

  1. Enter $10,000 as your initial amount.
  2. Set ongoing contributions to $0 (or add a monthly amount if you plan to contribute too).
  3. Timeline: 20 years
  4. Test return scenarios: 5%, 7%, 10%

Why earlier investing often wins

If you have the money ready now, investing earlier gives compounding more time. Waiting in cash can reduce long‑term growth (but may reduce short‑term risk).

Optional: compare lump sum vs “drip feeding”

If investing everything at once feels risky, model a smaller lump sum plus monthly contributions. You’ll see the tradeoff between time invested and timing risk.

FAQ

Is lump sum investing better than monthly investing?

Often lump sum wins mathematically because money is invested sooner, but behaviour and timing risk matter.

What return rate should I assume?

Try 5% (conservative), 7% (mid), 10% (optimistic) to see a range.

Does this include inflation, tax, or fees?

No. Treat results as estimates. You can lower the assumed return rate to be conservative.

What if I need the money soon?

If the timeline is short, a stable savings option may be safer. Consider using the ETF vs Savings comparison.

Where can I learn the formula?

See /how-compound-interest-works.html.

Related links

Try another calculator

Money Growth Retirement ETF vs Savings Start Late?