🇮🇳 India

Mutual Fund Returns Calculator India

Calculate your mutual fund CAGR on lump-sum investments, XIRR on SIP returns using Newton-Raphson method, and compare your performance against NIFTY 50, bank FD, and inflation benchmarks. Updated for FY 2025-26 with Finance Act 2024 tax rates.

Total amount you originally invested (lump sum)
Current market value of your investment
years
How long you held the investment

Try another scenario

How to Use This Calculator

My Returns (CAGR) tab

Enter your amount invested (original lump-sum investment), current value (today's market value), and investment period in years. The calculator shows your CAGR (annualised return) and absolute return. Use this to evaluate how well your mutual fund has performed over a given period.

SIP Returns (XIRR) tab

Enter your monthly SIP amount, number of months invested, and current portfolio value. The calculator computes the XIRR (Extended Internal Rate of Return) using the Newton-Raphson method, which is the mathematically correct way to measure SIP returns. It also shows total invested, profit, and absolute return.

Beat Benchmark? tab

Enter your fund's CAGR (from Tab 1 or your AMC statement). The calculator compares it against three key Indian benchmarks: NIFTY 50 (~12% CAGR), Bank FD (~7%), and Inflation (~6%). See instantly whether your fund is generating real wealth or underperforming the market.

Share your result

Every input is encoded in the URL. Click Share to send your exact scenario to a friend, financial advisor, or save it for later.

The Formula

Mutual fund returns can be measured using three different methods depending on the investment type:

CAGR (Compound Annual Growth Rate):
CAGR = (Ending Value / Beginning Value)1/n − 1

Where:
Ending Value = Current market value of investment
Beginning Value = Original amount invested
n = Number of years

Absolute Return:
Absolute Return = (Current Value − Invested Amount) / Invested Amount × 100

XIRR (for SIP investments):
Find rate r such that: Σ [Ci / (1 + r)(di − d0) / 365] = 0

Where:
Ci = Cash flow at date di (negative for SIP payments, positive for redemption)
d0 = Date of first cash flow
r = XIRR rate (solved using Newton-Raphson iteration)

Benchmark Comparison:
NIFTY 50 long-term CAGR: ~12% (10-year historical average, NSE India)
Bank FD average: ~7% (SBI, HDFC, ICICI, March 2026)
CPI Inflation: ~6% (10-year average, RBI data)

CAGR is ideal for lump-sum investments. For SIP, always use XIRR because each instalment is invested on a different date, making simple CAGR inaccurate. The XIRR accounts for the exact timing and amount of every cash flow.

Example

Rahul — Mumbai IT professional, evaluating his mutual fund portfolio

Rahul is 32, works at a tech company in Mumbai. He has two mutual fund investments: a lump-sum of &rupee;2,00,000 made 5 years ago (now worth &rupee;3,50,000) and a SIP of &rupee;5,000/month for 36 months (current value &rupee;2,10,000). He wants to know his actual returns and whether he's beating the market.

Step 1: Calculate CAGR on lump-sum investment

Amount invested&rupee;2,00,000
Current value&rupee;3,50,000
Period5 years
CAGR(3,50,000/2,00,000)^(1/5) − 1 = 11.84%
Absolute return75%

Step 2: Calculate XIRR on SIP investment

Monthly SIP&rupee;5,000
Duration36 months (3 years)
Total invested&rupee;1,80,000
Current value&rupee;2,10,000
XIRR~10.2% (Newton-Raphson method)

Step 3: Compare against benchmarks

Lump-sum CAGR11.84%
vs NIFTY 50 (~12%)Slightly below
vs Bank FD (~7%)Beating by ~4.8%
vs Inflation (~6%)Beating by ~5.8%

Rahul's lump-sum investment has a CAGR of 11.84%, close to the NIFTY 50 average. His SIP XIRR of ~10.2% is slightly lower but still beats FD rates and inflation. Both investments are generating real wealth. He could consider switching to a direct plan to save 0.5-1% in expense ratio, which compounds significantly over 10+ years.

FAQ

CAGR (Compound Annual Growth Rate) measures the annualised return of a lump-sum investment from point A to point B. It assumes a single investment at the start and a single value at the end. XIRR (Extended Internal Rate of Return) is designed for multiple cash flows at different dates — exactly what happens with SIP. Each monthly SIP instalment is a separate cash flow, and XIRR finds the single rate that makes the net present value of all those cash flows equal to zero. For SIP investments, XIRR gives a more accurate picture of your true annualised return than CAGR.
Use the formula: CAGR = (Current Value / Invested Amount)1/years − 1. For example, if you invested &rupee;1,00,000 and it grew to &rupee;1,80,000 in 5 years: CAGR = (1,80,000/1,00,000)^(1/5) − 1 = (1.8)^0.2 − 1 = 12.47%. This means your investment grew at an average annual rate of 12.47%, even if actual year-by-year returns were different. CAGR is the standard way to compare mutual fund performance across different time periods.
Both comparisons are valuable. NIFTY 50 is the most widely used broad market benchmark in India and represents the 50 largest companies. However, your specific fund may track a different benchmark — for example, mid-cap funds use NIFTY Midcap 150, and debt funds use CRISIL indices. Compare against NIFTY 50 for a general market comparison, and against your fund's specific benchmark (mentioned in the fund factsheet) for a more precise evaluation. If your fund consistently underperforms its own benchmark after expenses, consider switching to a low-cost index fund or a better-performing fund.
Direct plans are purchased directly from the AMC (Asset Management Company) without a distributor. They have a lower expense ratio (by 0.5-1.5% per year) because no distributor commission is paid. Regular plans are purchased through distributors, banks, or platforms that charge a trail commission, resulting in a higher expense ratio. Over long periods, this difference compounds significantly: on a &rupee;10,000 monthly SIP over 20 years at 12% return, switching from a regular plan (1.5% expense) to a direct plan (0.5% expense) can give you &rupee;15-20 lakh more. SEBI mandates all AMCs to offer direct plans. You can invest in direct plans through platforms like AMC websites, MFCentral, or Kuvera.
For equity mutual funds (including equity-oriented hybrid funds): Long-Term Capital Gains (LTCG, held > 1 year) are taxed at 12.5% on gains exceeding &rupee;1,25,000 per financial year. Short-Term Capital Gains (STCG, held < 1 year) are taxed at 20%. These rates were revised in Finance Act 2024 (previously 10% LTCG and 15% STCG). For debt mutual funds (purchased after 1 April 2023): gains are taxed at your income tax slab rate regardless of holding period, with no indexation benefit. Each SIP instalment is treated as a separate purchase, so holding period is calculated individually. Plan redemptions across financial years to maximise the &rupee;1.25 lakh annual LTCG exemption.

Related Calculators

Add This Calculator to Your Website

Embed the sum.money Mutual Fund Returns Calculator on your site. Free, responsive, always up-to-date.

<iframe src="https://sum.money/embed/in/mutual-fund-returns-calculator" width="100%" height="600"></iframe>