How to use the mutual fund returns calculator
- Choose lumpsum or SIP.
- For a lumpsum, enter the amount invested and either the purchase and current NAV or the current value, plus the purchase date.
- For a SIP, enter the monthly amount, the first instalment date and the current value.
- Pick equity or debt (and your slab for debt) to see the tax on your gains.
- Read the absolute and annualised return and the expense ratio comparison.
Return formulas
Absolute return = (Current value − Invested) ÷ Invested × 100
CAGR = (Current value ÷ Invested)1 ÷ years − 1
Example: ₹2,00,000 at a NAV of ₹45.2 buys 4424.779 units. At a NAV of ₹68.75 they are worth ₹3,04,204: an absolute return of 52.10%, or 13.41% a year over 3 years 4 months.
Expense ratio on ₹1 lakh at a 12% gross return
| Expense ratio | After 10 years | After 20 years | Lost to costs (20 yrs) |
|---|---|---|---|
| 0.25% | ₹3,03,721 | ₹9,22,467 | ₹42,163 |
| 0.5% | ₹2,96,995 | ₹8,82,058 | ₹82,571 |
| 1% | ₹2,83,942 | ₹8,06,231 | ₹1,58,398 |
| 1.5% | ₹2,71,408 | ₹7,36,623 | ₹2,28,006 |
| 2% | ₹2,59,374 | ₹6,72,750 | ₹2,91,879 |
Tax on equity fund gains
| Gain in the year | Short-term (≤ 12 months) | Long-term (> 12 months) |
|---|---|---|
| ₹1,00,000 | ₹20,800 | ₹0 |
| ₹2,00,000 | ₹41,600 | ₹9,750 |
| ₹5,00,000 | ₹1,04,000 | ₹48,750 |
Tax includes 4% cess and assumes no other equity gains in the year; surcharge is ignored. For full details use the capital gains calculator.
Frequently asked questions
How are mutual fund returns calculated?
Absolute return = (current value − amount invested) ÷ amount invested × 100. To compare across holding periods, annualise it: CAGR for a single lumpsum, XIRR for SIPs or multiple purchases.
How do I calculate returns from NAV?
Units = amount invested ÷ purchase NAV. Current value = units × current NAV. The return in percent is the same as (current NAV ÷ purchase NAV − 1) × 100, ignoring dividends paid out and any exit load or stamp duty.
How are equity mutual fund gains taxed in 2026-27?
Gains on units held 12 months or less are short-term and taxed at 20%. Gains on units held longer are long-term and taxed at 12.5% above ₹1.25 lakh a year across all your listed equity and equity fund gains. Add 4% cess.
How are debt mutual fund gains taxed?
For debt-oriented funds bought on or after 1 April 2023, gains are added to your income and taxed at your slab rate, however long you hold the units. There is no indexation benefit.
What does the expense ratio do to my returns?
The expense ratio is deducted from the fund's assets every day, so the NAV you see is already after it. A 1% higher expense ratio lowers your yearly return by about 1%, which compounds into a large gap over 20 years.
Why is my SIP return shown as XIRR?
In a SIP each instalment is invested for a different length of time, so a single CAGR does not apply. XIRR uses the date of every instalment to give one comparable yearly rate.