Mutual Fund Returns Calculator

Investment

Know what your mutual fund really earned. Turn the money you put in and its value today into a clear absolute return and an annualised CAGR.

Free · No sign-up · Private5 min readUpdated 27 July 2026

In short: Absolute return is the total percentage gain from start to now; annualised return (CAGR) is the constant yearly rate that would grow your investment to its current value — the fairer number for comparing funds held over different periods.

Your inputs

Results

Total gain

₹80,000

Absolute profit

Absolute return

80%

Annualised return (CAGR)

12.47%

Per year

Current value

₹1,80,000

Year-wise growth

Value growing from your investment to today at the annualised rate.

Year-wise value

Year-wise value
Year	Value	Gain
1	₹1,12,475	₹12,475
2	₹1,26,505	₹26,505
3	₹1,42,286	₹42,286
4	₹1,60,036	₹60,036
5	₹1,80,000	₹80,000

Values are interpolated along the annualised (CAGR) path; the final year equals your current value.

Formula

Absolute = (Current − Invested) ÷ Invested × 100 • CAGR = [(Current ÷ Invested)^(1/n) − 1] × 100

Invested: Amount you originally put in
Current: Value of the holding today
n: Number of years held

Step-by-step calculation

Worked with the default values.

1
Absolute return
(₹1,80,000 − ₹1,00,000) ÷ ₹1,00,000 × 100
= 80%
2
Annualised return (CAGR)
[(₹1,80,000 ÷ ₹1,00,000)^(1/5) − 1] × 100
= 12.47%
3
Total gain
Current value − Amount invested
= ₹80,000

How it works

Absolute return simply compares current value to what you invested, ignoring how long you held it.
CAGR spreads that total growth evenly across the years to give a single annual rate.
Because CAGR accounts for time, it lets you compare a fund held for 3 years against one held for 8 on a like-for-like basis.

Examples

₹1,00,000 grows to ₹1,80,000 over 5 years

80% absolute return, but a more modest 12.5% annualised (CAGR) — time changes the picture.

₹1,00,000 grows to ₹1,80,000 over just 2 years

Same 80% absolute return, yet a much higher ~34% CAGR because it happened faster.

Understanding the Mutual Fund Returns Calculator

Two ways to measure a fund’s return

When your mutual fund statement shows a gain, that single number can mislead you unless you know *how long* the money was invested. There are two standard ways to express the return, and this calculator shows both.

Absolute return answers “how much did it grow in total?” — (Current − Invested) ÷ Invested × 100. It ignores time entirely.
Annualised return (CAGR) answers “how fast did it grow each year?” — the constant yearly rate that would compound your investment up to its current value.

Why CAGR is the fairer number

Suppose two funds both turned ₹1,00,000 into ₹1,80,000 — an 80% absolute return each. If one did it in 5 years and the other in 2, they are not remotely equal. The first grew at about 12.5% a year; the second at roughly 34%. CAGR strips out the effect of time, which is exactly why it is the standard for comparing investments held over different periods. Whenever you hold for more than a year, CAGR will be lower than the absolute return, because the total gain is spread across several years.

Reading the growth path

The year-wise chart and table trace a smooth path from your invested amount to today’s value, growing at the CAGR each year. Real markets are never this smooth — they zig-zag — but the interpolated path shows the *average* trajectory and lands exactly on your current value in the final year.

What the number does not tell you

Both figures here are nominal and gross. They do not subtract inflation, so to judge real growth in purchasing power you should deduct the inflation rate over the same span — a 12% CAGR against 6% inflation is only about a 6% real return. They also exclude capital gains tax and any exit load. And because this is a point-to-point calculation from a single invested amount, it is not the right tool for SIPs, where money enters on many dates; those are best measured with XIRR. Used within these limits, the absolute return and CAGR together give you an honest, comparable read on how your investment has actually performed.

Pros

Separates total gain from the annual rate so you understand both.
CAGR makes funds held over different periods directly comparable.
Works for any lump-sum investment — mutual funds, stocks or ETFs.
Shows a clear year-by-year growth path to the current value.
Instantly reveals whether a big-looking absolute return is actually modest per year.

Cons

Designed for lump-sum inputs, not multi-date SIPs (which need XIRR).
Returns are nominal — inflation and taxes are not deducted.
CAGR assumes smooth growth and hides the year-to-year volatility that actually occurred.

Tips

1Always compare a fund’s CAGR against its benchmark index over the same period, not in isolation.
2For monthly SIPs, use XIRR or the SIP calculator instead of this point-to-point method.
3Subtract inflation from your CAGR to see your real gain in purchasing power.
4Remember short-period CAGRs can be misleading — treat sub-one-year figures as absolute returns.
5Factor in exit load and capital gains tax before treating the return as money in hand.

Frequently asked questions

Everything you need to know about the Mutual Fund Returns Calculator.

What is the difference between absolute and annualised return?

Absolute return is the total percentage change from start to finish, regardless of time. Annualised return (CAGR) converts that into a yearly rate, so it reflects how fast the money grew. Two funds with the same absolute return can have very different CAGRs if held for different periods.

Which return should I use to compare funds?

Use CAGR. Because it normalises for the holding period, it is the fair way to compare investments held for different lengths of time. Absolute return alone can flatter a fund simply because you held it longer.

What is a good CAGR for a mutual fund?

Over long periods, equity funds in India have historically delivered roughly 11–13% CAGR, debt funds less. What counts as “good” depends on the fund category and the risk taken — compare against a relevant benchmark index rather than in isolation.

Does this calculator work for SIPs?

It is designed for a lump-sum-style point-to-point return using a single invested amount and current value. SIP returns, where money goes in on many dates, are better measured with XIRR. Use the SIP calculator for regular monthly investments.

Should I use CAGR for holdings under one year?

CAGR is meant for multi-year holdings. For periods under a year, annualising a short-term gain can overstate the picture wildly, so the absolute return is the more honest figure for such short spans.

Does the return account for inflation?

No. Both figures are nominal returns. To judge real growth in purchasing power, subtract the inflation rate over the same period from your CAGR — a 12% CAGR against 6% inflation is roughly a 6% real return.

Are taxes and exit loads included?

No. The calculator shows gross returns before capital gains tax and any exit load. Equity fund gains held over a year are taxed at 12.5% above the ₹1.25 lakh annual exemption; shorter holdings are taxed at 20%.

Why is my CAGR lower than my absolute return?

Whenever you hold for more than a year, CAGR is lower than absolute return because the total gain is being spread across several years. Only for a one-year holding do the two figures coincide.

What if my current value is below what I invested?

Then both returns are negative — the calculator will show a loss. A negative CAGR tells you the average annual rate at which the investment shrank.

Methodology & sources

How the Mutual Fund Returns Calculator is calculated, and where the underlying rules come from.

How we calculate it

Every result is produced by a single, shared and tested financial-formula library used across the whole site — so the maths is consistent from one calculator to the next. Figures are estimates based on the inputs you enter and standard assumptions (such as regular compounding and constant rates); real-world outcomes vary with taxes, fees and changing rates. All calculations run in your browser — nothing you type is stored or sent to a server.

Sources & references

Editorial policy & disclaimer. FinCalcHub provides free educational tools and estimates — not personalised financial, tax or investment advice. Verify important decisions with a qualified professional. Read our editorial approach, disclaimer and privacy policy.

Last reviewed for accuracy on 27 July 2026.

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