Mutual Fund Returns Calculator
Absolute and annualised (CAGR) return on a mutual fund holding.
This is a point-to-point return for a lumpsum holding. If you invested through a SIP or bought on many dates, use the XIRR calculator instead.
₹1 L grew to ₹2.5 L in 5 years — 150.00% in total, which is 20.11% compounded every year.
A mutual fund returns calculator tells you how well a fund has actually done for you: enter what you invested, what the holding is worth today and how long you have held it, and it reports the absolute return, the annualised return (CAGR) and the rupee gain. Absolute return answers 'how much did I make', CAGR answers 'at what yearly rate did it grow'.
The distinction matters because a 150% gain sounds spectacular until you learn it took ten years. This calculator always shows both numbers side by side so you can compare a fund against an FD, an index or another fund over a different period on equal terms.
How mutual fund returns are calculated
Two formulas do the work. Absolute return = (current value ÷ invested amount − 1) × 100, which ignores time completely. Annualised return, or CAGR, = ((current value ÷ invested amount)^(1 ÷ years) − 1) × 100, the constant yearly rate that would have turned your investment into today's value.
Worked example: you invested ₹1,00,000 in an equity fund and it is worth ₹2,50,000 five years later. The absolute return is (2,50,000 ÷ 1,00,000 − 1) × 100 = 150%, a 2.5x multiple and a gain of ₹1,50,000. The annualised return is (2.5^(1÷5) − 1) × 100 = 20.11% per year. Stretch the same 2.5x over ten years instead and the CAGR falls to 9.6% — the same profit, a very different fund.
How to use this calculator
- Set the amount invested — the lumpsum you put into the fund, before any gains.
- Set the current value from your latest statement or the fund's NAV multiplied by your units.
- Set the holding period in years, counted from the purchase date to the valuation date.
- Read the CAGR to compare this fund against another fund, an index or a fixed deposit.
- Use the absolute return and total gain when you simply want to know how much money you made.
- If you invested through a SIP or bought units on several dates, switch to the XIRR calculator — CAGR assumes one purchase and one valuation.
What Indian investors should read into the numbers
Fund factsheets in India quote returns as absolute for periods under a year and CAGR for anything longer, following SEBI's disclosure norms — so use CAGR for the like-for-like comparison against a fund's benchmark (Nifty 50 TRI, Nifty Midcap 150 TRI and so on). Broad equity indices have compounded at roughly 11–13% over long periods, so a fund CAGR meaningfully below its benchmark over five years is a genuine warning sign, while one or two bad quarters are noise.
Remember the calculator gives a pre-tax, pre-cost figure. Equity funds pay 12.5% long-term capital gains tax on gains above ₹1.25 lakh a year (holding over 12 months) and 20% short-term below that; debt funds bought after 1 April 2023 are taxed at your slab rate regardless of holding period. Expense ratio is already reflected in the NAV, but exit load (typically 1% within a year) is not — deduct it from the current value if you plan to redeem soon. Comparing the regular plan of a fund with its direct plan is the easiest CAGR upgrade most investors can make, worth roughly 0.5–1% a year.
Frequently asked questions
What is the difference between absolute return and CAGR?
Absolute return is the total percentage gain from start to finish and ignores how long you held the fund. CAGR converts that gain into a per-year compounding rate. Two funds can both show 100% absolute return, but the one that did it in three years has a far higher CAGR than one that took eight.
Should I use CAGR or XIRR for my mutual fund?
Use CAGR when you made a single lumpsum investment and want the return up to one valuation date. Use XIRR the moment there are multiple purchases or partial redemptions, such as a monthly SIP, because it weights each cash flow by how long it stayed invested.
What is a good CAGR for an equity mutual fund in India?
Historically, diversified Indian equity funds have delivered roughly 11–14% CAGR over ten-year-plus periods, with debt funds nearer 6–8%. Judge a fund against its own benchmark index and category average over identical dates rather than against a fixed target number.
Does this calculator account for tax and exit load?
No, it works purely on the invested amount and current value you enter, so the result is pre-tax. For a post-tax picture, reduce the current value by the capital gains tax you would pay and by any exit load before entering it.
Is the expense ratio already included?
Yes, indirectly. A fund's NAV is published after deducting the expense ratio, so the current value from your statement is already net of fund costs. That is also why a direct plan, with a lower expense ratio, shows a higher CAGR than the regular plan of the same scheme.
Can the annualised return be negative?
Yes. If the current value is below what you invested, both the absolute return and CAGR turn negative — the yearly rate at which your investment shrank. Over short holding periods a modest paper loss can look dramatic in annualised terms, so read it alongside the absolute figure.
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Disclaimer: results are estimates based on the inputs and published rules/rates, for information only — not investment, tax or legal advice. Verify important decisions with a qualified professional. See our full disclaimer.