Mutual Fund Returns Calculator

Calculate the annualized (CAGR) and total returns from a mutual fund investment, given its initial and current value.

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Enter your initial and current mutual fund value and holding period to calculate CAGR.
years

Your result

20.11%

Annualized return (CAGR)

Total return150.00%

AI explanation

Formula

CAGR = (current value / initial value)^(1/years) − 1

Worked example

₹1L to ₹2.5L over 5 years

Worked example: ₹1L to ₹2.5L over 5 years
FieldValue
Initial investment value100000
Current value250000
Holding period5
Annualized return (CAGR)20.11
Total return150

Assumptions

  • CAGR smooths out the actual year-to-year volatility of mutual fund returns into a single average annual rate.
  • Does not account for any additional contributions made after the initial investment — for a series of SIP investments, see the SIP Returns Calculator instead.
  • Informational only.

Frequently asked questions

What is CAGR and why does it matter for mutual funds?

CAGR (Compound Annual Growth Rate) is the smoothed annual return that would take your investment from its initial to final value over the period, ignoring year-to-year fluctuations — it's the standard way to compare fund performance across different time periods.

How is CAGR different from total return?

Total return is the overall percentage gain over the entire holding period, while CAGR annualizes that gain — a fund with 150% total return over 5 years has a CAGR of about 20%, not 150%/5=30%, because compounding matters.

Should I use this for a lumpsum or SIP investment?

This calculator is designed for a single lumpsum investment. For a series of periodic SIP investments, use the SIP Returns Calculator instead, since CAGR alone doesn't account for multiple cash flows at different times.

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Sources

This calculator provides a general estimate only and does not constitute investment advice. Mutual fund investments are subject to market risk.

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