Mutual Fund Returns Calculator
Calculate fund returns from buy NAV and current NAV — see profit, CAGR, and a forward projection.
Fund Details
Dividends/distributions paid out — not reinvested. Add 0 if growth plan.
Current Portfolio Value
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Profit / Loss
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Absolute Return
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CAGR
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Units Purchased
Forward Projection (if CAGR continues)
Projection assumes the historical CAGR continues. Actual returns will vary.
Forward Projection Table
Calculation Details
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How to use this calculator
Enter the Investment Amount (how much you invested), the Purchase NAV (the NAV when you bought), the Current NAV (today’s NAV), any Dividends Received (optional, for dividend/IDCW plans), and the Holding Period in years.
The calculator returns:
- Current Portfolio Value: units owned × current NAV
- Profit / Loss: current value + dividends − original investment
- Absolute Return: total gain as a percentage
- CAGR: annualized return, useful for comparing funds across different holding periods
$10,000 invested at NAV of $18, current NAV is $47, held for 7 years, no dividends
Units purchased = $10,000 / $18 = 555.56 units Current value = 555.56 × $47 = $26,111 Profit = $26,111 − $10,000 = $16,111 Absolute return = 161.1% CAGR = ($26,111 / $10,000)^(1/7) − 1 = 14.7%
Understanding NAV
NAV (Net Asset Value) is the per-unit price of a mutual fund, calculated as:
Key facts about NAV:
- Updated once per day after market close (unlike stocks which update continuously)
- Reflects the fair market value of all underlying holdings
- Does not indicate whether a fund is “cheap” or “expensive”; a $200 NAV fund is not more expensive than a $10 NAV fund if they track the same assets
- Your investment buys units at NAV; selling also happens at NAV
A lower NAV does not mean better value. A fund with NAV $10 and a fund with NAV $200 holding identical portfolios will perform identically. The total return depends on the underlying assets, not the absolute NAV level. Do not pick funds based on NAV price alone.
Why CAGR is a better comparison metric than absolute return
Absolute return tells you the total percentage gain without regard to time. It answers: “How much did I make overall?”
CAGR (Compound Annual Growth Rate) tells you the annualized return. It answers: “How does this compare to other investments made for different periods?”
Why CAGR matters for comparison:
| Fund | Investment | Current Value | Absolute Return | Holding Period | CAGR |
|---|---|---|---|---|---|
| Fund A | $10,000 | $25,000 | 150% | 7 years | 14.0% |
| Fund B | $10,000 | $30,000 | 200% | 10 years | 11.6% |
| Fund C | $10,000 | $20,000 | 100% | 5 years | 14.9% |
Fund C has the lowest absolute return but the highest CAGR. Fund B looks best on absolute terms but is actually the weakest on a per-year basis. CAGR is the right metric for comparing funds.
Mutual fund CAGR benchmarks
What is a good CAGR for different fund categories?
| Fund Category | 5-Year CAGR (Good) | 10-Year CAGR (Good) |
|---|---|---|
| Money market / liquid | 4–6% | 4–5% |
| Short-duration debt | 6–7% | 5–6% |
| Corporate bond / FMP | 7–9% | 6–8% |
| Balanced / hybrid | 9–12% | 9–12% |
| Large-cap index | 12–15% | 11–14% |
| Large-cap active | 10–13% | 9–12% |
| Mid-cap funds | 14–18% | 14–18% |
| Small-cap funds | 15–22% | 15–20% |
| International equity | 8–12% | 8–11% |
These are approximate ranges based on historical performance. Future returns may vary. Always compare against the fund’s benchmark index CAGR over the same period.
The most important benchmark for any mutual fund is not an absolute return target; it's the fund's own benchmark index. A large-cap fund returning 12% CAGR when the S&P 500 returned 14% is underperforming. A small-cap fund returning 15% when small-cap indices returned 18% is also underperforming. Beat your benchmark, after fees.
Why growth plans compound faster than dividend plans over time
Mutual funds typically offer two options:
Growth Plan: All returns compound inside the fund. NAV grows continuously. No payouts. Dividend / IDCW Plan: Fund periodically distributes returns, reducing NAV by the payout amount.
For wealth building, growth plans almost always outperform dividend plans over long periods because the full return compounds without leaking out as taxable distributions.
Illustration: $10,000 invested, 12% return, 10 years:
| Plan | Approach | Final Value |
|---|---|---|
| Growth | All returns compound | ~$31,058 |
| Dividend (2% payout, reinvested) | NAV net of payout, reinvested externally | ~$29,400 |
| Dividend (2% payout, spent) | NAV net of payout; payouts used | ~$21,589 + $7,600 cash |
The dividend investor who spends the payouts has the same NAV appreciation as the cash (price-only) return, plus the income. But they miss the full compounding on the reinvested amount.
As of 2021, SEBI (India) mandated renaming “dividend” plans to “IDCW” (Income Distribution cum Capital Withdrawal), which accurately reflects that dividends come from the investor’s own capital (NAV), not purely from income. In the U.S., mutual fund distributions are reported in the fund’s prospectus as ordinary dividends or capital gain distributions.
Expense ratio impact on long-term returns
The expense ratio is the annual fee deducted from NAV; it silently reduces NAV growth each day.
$10,000 invested, 10% gross return, different expense ratios, 20 years:
| Expense Ratio | Net Return | Final Value | Cost of Fees |
|---|---|---|---|
| 0.03% (index ETF) | 9.97% | $67,400 | $800 |
| 0.5% | 9.50% | $60,800 | $7,400 |
| 1.0% | 9.00% | $56,000 | $12,200 |
| 1.5% | 8.50% | $49,300 | $18,900 |
| 2.5% | 7.50% | $42,500 | $25,700 |
A 2.5% annual expense ratio costs $25,700 on a $10,000 investment over 20 years, which is 2.57× the original investment gone to fees. This is the core argument for low-cost index investing.
The bottom line
Mutual fund returns analysis starts with NAV and ends with CAGR. The key discipline:
- Use CAGR for comparisons: not absolute return, which is biased by holding period length
- Compare against the benchmark: a fund’s CAGR only means something relative to what a passive index would have earned
- Account for the expense ratio: subtract it from gross return expectations for long-term projections
- Choose growth plans for wealth accumulation; dividend/IDCW plans only when periodic income is needed
For modeling monthly SIP investments rather than lump-sum NAV purchases, use the SIP Calculator.
Frequently Asked Questions
What is NAV in mutual funds?
NAV (Net Asset Value) is the market price per unit of a mutual fund, updated daily after market close. It represents the per-unit value of the fund's underlying portfolio after fees and expenses.
How do I find the purchase NAV?
Check your investment statement or contract note from when you purchased the fund. Your broker or fund provider's online portal should show the date of purchase and the NAV at which units were allotted.
What is a good CAGR for a mutual fund?
For equity mutual funds, 12–15% CAGR over 5–10 years is considered good. Large-cap funds average 10–12%; small/mid-cap funds average 12–18% with higher volatility. Benchmark the CAGR against the fund's reference index over the same period.
Is CAGR the same as annualized return?
Yes. CAGR is the rate at which an investment would have grown if it grew at a steady rate each year. It smooths out year-to-year volatility and equals the annualized return.
How is mutual fund return taxed?
In the US, mutual fund distributions are taxed annually, even if reinvested. Short-term gains (held under 1 year) are taxed as ordinary income; long-term gains (held over 1 year) at 0%, 15%, or 20%.
What is the expense ratio and how does it affect returns?
The expense ratio is the annual fee charged by the fund, deducted from NAV daily. A 1% expense ratio on a 10% gross return yields 9% net. Over 30 years on $10,000, the 1% fee costs roughly $57,000 in forgone growth.
Should I use growth or dividend option?
For long-term wealth building, growth (accumulation) plans are generally superior because all returns compound inside the NAV. Choose dividend/IDCW only if you need periodic income.
What does it mean if NAV has fallen below my buy price?
If the current NAV is below your purchase NAV, your investment shows a loss. This is normal during market downturns. For long-term equity investments, temporary NAV declines are expected — the key metric is CAGR over the full planned holding period.
Can I compare two funds using this calculator?
Yes — run the calculator twice with each fund's NAV figures and the same investment amount and period. Compare the resulting CAGRs and absolute returns.
How do fund splits affect NAV return calculations?
If the fund issued bonus units (a split), your original unit count increased but NAV decreased proportionally. Total value is unchanged. Adjust your purchase NAV and unit count if splits occurred before using this calculator.
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