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 it. The calculator works out both your absolute return and your annualized return (CAGR).
Absolute return simply measures total gain as a percentage of your original investment, regardless of how long you held it.
Annualized return (CAGR) converts that gain into an equivalent constant yearly growth rate, making it possible to fairly compare investments held for different lengths 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 Amount100,000
- Current Value160,000
- Investment Period3 years
- Absolute Return: 60% | Annualized Return (CAGR): 16.96%
Important Assumptions
- This calculator assumes a single lumpsum investment and a single current value — it doesn't account for multiple purchases or partial redemptions.
- Returns shown are pre-tax and don't factor in exit charges or capital gains tax.
- For SIP investments made in multiple instalments, use the SIP Calculator instead for a more accurate projection.