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Mutual Fund Return Calculator
A mutual fund return calculator answers three everyday questions: how fast has a lump sum actually grown (its CAGR), what could a monthly SIP become at an assumed return, and how large a SIP a target amount needs. Pick a mode and get the answer with a year-by-year picture.
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Year-by-year picture
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How to use this mutual fund return calculator
- Pick a mode at the top. Choose CAGR to judge a lump sum you already hold, the SIP mode to project a monthly investment at an assumed return, or the goal mode to find the SIP a target needs.
- Enter the amounts and the number of years. For growth-rate mode, the years can be in decimals — 6.5 years is fine.
- For the SIP and goal modes, enter the return you want to assume. Nothing in a mutual fund is guaranteed, so test 10% and 14% as well as 12%.
- Read the headline result, the summary table and the year-by-year picture.
How mutual fund returns are measured
A mutual fund's growth over several years is measured as a CAGR — compound annual growth rate — the steady yearly rate that would take the starting value to the ending value:
CAGR smooths out the ups and downs in between, which makes it the right yardstick for comparing funds held over the same period. The absolute return — the simple percentage gain — ignores time completely, so this calculator shows both. For SIPs, money goes in every month, so each instalment grows for a different length of time. With an assumed constant return, the SIP modes use the standard future-value formula (the same one as our SIP calculator):
Strictly, the exact return of a real SIP is its XIRR, which needs every instalment date and the final NAV. The SIP modes here are estimates built on a steady assumed return — the standard way to plan — not a statement of what any fund has earned or will earn.
Worked example
Suppose a lump sum of ₹2,00,000 grew to ₹4,00,000 in 6 years:
- Absolute return: (₹4,00,000 − ₹2,00,000) ÷ ₹2,00,000 = 100%
- CAGR: (4,00,000 ÷ 2,00,000)1/6 − 1 = 12.25% a year
Doubling in six years always works out to about 12.25% a year, whatever the amount — a handy check on any fund's claims. The other modes in action: a ₹10,000 monthly SIP at an assumed 12% for 10 years grows to about ₹23,23,391, and reaching a ₹1 crore target in 15 years at 12% needs a SIP of about ₹19,819 a month.
Reading returns like an investor
- Compare like with like. Judge a fund's CAGR against its benchmark index and its category average over the same period — never against a fixed deposit rate alone.
- Longer periods tell the truth. One-year returns swing wildly; 5- and 10-year CAGRs show how a fund behaves across market cycles.
- Costs eat returns. The expense ratio is charged every year. A direct plan with a 0.5% lower cost quietly compounds into a meaningfully bigger corpus over 15 years.
- Tax: equity fund gains held over 12 months are taxed at 12.5% above ₹1.25 lakh a year (LTCG); shorter holdings at 20% (STCG). Debt fund gains are taxed at your slab rate. Returns shown by any calculator are before tax.
Frequently asked questions
What is CAGR in a mutual fund?
CAGR is the compound annual growth rate — the single steady yearly rate that would grow your starting amount into the ending amount over the period. If ₹2,00,000 becomes ₹4,00,000 in 6 years, the CAGR is (2)^(1/6) − 1, about 12.25% a year, even though the fund certainly did not grow by exactly that much each year.
What is the difference between CAGR, absolute return and XIRR?
Absolute return is the plain percentage gain and ignores time. CAGR annualises the growth of a single lump sum, so it is used for one-time investments. XIRR is the annualised return of a series of cash flows on different dates — the correct measure for a real SIP, where every instalment has its own holding period.
What return should I assume for an equity mutual fund SIP?
For planning, 10–12% a year is the range most planners use for diversified equity funds over long periods, based on Indian market history. It is an assumption, not a promise — actual returns arrive unevenly and can be negative over short periods. Always test your plan at a lower figure too.
How much SIP do I need to reach ₹1 crore?
It depends on the time you have and the return you assume. At 12% a year, reaching ₹1 crore in 15 years needs about ₹19,819 a month; in 20 years about ₹10,009 a month; in 25 years about ₹5,270 a month. Use the goal mode to run your own numbers — time is the most powerful input.
Are mutual fund returns guaranteed?
No. Mutual funds are market-linked, and returns vary year to year. The figures in this calculator come from the return you assume, applied evenly — a planning device that shows what steady growth at that rate would produce, not a forecast for any specific fund.
How are mutual fund returns taxed in India?
For equity funds, gains on units held more than 12 months are taxed at 12.5% on the amount above ₹1.25 lakh in a financial year, and gains on units held 12 months or less at 20%. Debt fund gains are added to your income and taxed at your slab rate. Calculator results are shown before tax.