How the Mutual Fund Return Calculator Works
Enter the amount you originally invested, the current value of your holding, and how long you've held the investment. The calculator computes both your absolute return and your annualized return (CAGR).
Absolute return simply measures total gain as a percentage of the original investment, regardless of how long you held it.
Annualized return (CAGR) converts that gain into an equivalent constant yearly growth rate, which makes it possible to fairly compare investments held for different periods of time.
Formula Used
Absolute return and annualized return (CAGR) are calculated as follows:
CAGR = ((Current Value / Invested Amount) ^ (1/n) − 1) × 100- nHolding period in years
- Absolute Return(Gain ÷ Invested Amount) × 100
Example Calculation
Suppose your investment grew from an initial amount to a higher value over 3 years.
- Invested Amount₹1,00,000
- Current Value₹1,60,000
- Investment Period3 years
- ResultAbsolute Return: 60% | Annualized Return (CAGR): 16.96%
Important Assumptions
- This calculator assumes a single lumpsum investment and a single current value — it does not account for multiple purchases or partial redemptions.
- Returns shown are pre-tax and do not factor in exit loads or capital gains taxation.
- For SIP investments with multiple instalments at different dates, use the SIP Calculator instead for a more accurate projection.