Mutual Fund Returns Calculator
Calculate absolute returns, annualized returns, and CAGR for your mutual fund investments
Investment Details
Understanding Returns
Absolute Return: The total return on your investment without considering the time period.
CAGR (Compound Annual Growth Rate): The annualized return rate assuming your investment grew at a steady rate.
Annualized Return: The return per year, useful for comparing investments over different time periods.
Returns
Enter investment details to see results
Est. Returns
Enter investment details to see results
How Mutual Fund Returns are Calculated?
Mutual fund returns can be measured in two ways: Absolute Return and CAGR (Compound Annual Growth Rate). Absolute return shows total gain/loss, while CAGR shows the annualized return rate, making it easier to compare investments over different time periods.
Returns Formula/Equation
Absolute Return: ((Current Value - Initial Investment) / Initial Investment) × 100%
CAGR: ((Ending Value / Beginning Value)^(1/Years) - 1) × 100%
Where:
- Initial Investment = Amount invested at the start
- Current Value = Current value of the investment
- Years = Investment period in years
- Absolute Return = Total percentage gain/loss over the period
- CAGR = Annualized return rate (smoothed average)
Example:
Let's calculate returns for an investment of ₹1,00,000 that grew to ₹1,50,000 over 3 years.
Given: Initial Investment = ₹1,00,000, Current Value = ₹1,50,000, Years = 3
Step 1: Calculate Absolute Return
Absolute Return = ((₹1,50,000 - ₹1,00,000) / ₹1,00,000) × 100%
Absolute Return = (₹50,000 / ₹1,00,000) × 100%
Absolute Return = 50%
Step 2: Calculate CAGR
CAGR = ((₹1,50,000 / ₹1,00,000)^(1/3) - 1) × 100%
CAGR = (1.5^(0.333) - 1) × 100%
CAGR = (1.1447 - 1) × 100%
CAGR = 14.47%
Result: Your absolute return is 50% over 3 years, which translates to a CAGR of 14.47% per year. This means your investment grew at an average rate of 14.47% annually.
Use Cases for Mutual Fund Returns Calculator
Performance Evaluation
Evaluate how your mutual fund investments have performed
Investment Comparison
Compare returns across different funds and time periods
Goal Planning
Plan future investments based on historical returns
Portfolio Analysis
Analyze overall portfolio performance and CAGR
Benefits of Using Our Mutual Fund Returns Calculator
Calculate both absolute return and CAGR
Compare investments over different time periods
Understand true investment performance
Make informed investment decisions
100% free, no registration required
Mobile-friendly design
Mutual Fund Returns Calculator FAQs
❓What is absolute return?
Absolute return is the total percentage gain or loss on an investment over a specific period, regardless of the time taken. It's calculated as (Current Value - Initial Investment) / Initial Investment × 100%.
❓What is CAGR?
CAGR (Compound Annual Growth Rate) is the annualized return rate that shows the average yearly growth of an investment, assuming it grew at a steady rate. Formula: CAGR = ((Ending Value / Beginning Value)^(1/Years)) - 1 × 100%.
❓Why is CAGR better than absolute return?
CAGR provides a standardized annual return rate, making it easier to compare investments of different durations. Absolute return doesn't account for time, so a 50% return over 1 year (50% CAGR) is much better than 50% over 5 years (8.45% CAGR).
❓Are mutual fund returns guaranteed?
No, mutual fund returns are not guaranteed. They depend on market performance and fund management. Past performance doesn't guarantee future results. Equity funds are subject to market risks, while debt funds carry credit and interest rate risks.
❓Is this calculator accurate?
Yes, this calculator uses standard financial formulas for absolute return and CAGR calculations. However, actual mutual fund returns may vary based on market conditions, fund performance, and expenses. Always check actual NAV (Net Asset Value) from fund statements.