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Mutual Fund Returns Calculator

Total Invested

₹6,00,000

Est. Returns

₹5,20,179

Total Value

₹11,20,179

Adjust Parameters

₹
₹500₹1,00,00,000
%
1%30%
Yrs
1 Yrs40 Yrs

Wealth Breakdown

Total Value

₹11,20,179

Invested
Returns

Compounding Growth Over Years

Timeline SnapshotYear 1
Total Invested₹60,000
Est. Returns+₹3,832
Total Value₹63,832

💡 Hover or tap any bar to explore other years

YEARS
Total Invested
Est. Returns

Year-by-Year Growth Projection

YearAmount InvestedWealth GainedTotal Corpus
1 Year₹60,000₹3,832₹63,832
2 Years₹1,20,000₹15,325₹1,35,325
3 Years₹1,80,000₹35,396₹2,15,396
4 Years₹2,40,000₹65,076₹3,05,076
5 Years₹3,00,000₹1,05,518₹4,05,518
6 Years₹3,60,000₹1,58,013₹5,18,013
7 Years₹4,20,000₹2,24,007₹6,44,007
8 Years₹4,80,000₹3,05,120₹7,85,120
9 Years₹5,40,000₹4,03,167₹9,43,167
10 Years₹6,00,000₹5,20,179₹11,20,179

How are SIP returns calculated?

How do SIP calculators work?

A SIP plan calculator works on the following formula:

M = P × ({[1 + i]^n – 1} / i) × (1 + i)
  • M is the amount you receive upon maturity.
  • P is the amount you invest at regular intervals.
  • n is the number of payments you have made.
  • i is the periodic rate of interest.

The Compounding Secret: Monthly vs. Annual Returns

A common mistake investors make is simply dividing the annual return by 12. For example, assuming a 12% annual return equals exactly 1% per month is incorrect because mutual fund returns are compounded.

The correct way to convert an annual return into a monthly return for mutual funds is by using the Effective Monthly Rate formula:

Monthly Return = (1 + Annual Return)^(1/12) – 1

For an annual return of 12%, the effective monthly return comes to about 0.948%, not 1%. If you were to assume a flat 1% monthly, the compounded annual return would artificially inflate your estimated wealth. Our calculator uses the strict, mathematically accurate CAGR method to ensure your wealth projections are completely realistic.

Estimate wealth generation for SIP and lumpsum mutual fund investments over your chosen time period.

Mutual Fund Returns Calculator — Frequently Asked Questions

Everything you need to know about Mutual Fund returns.

Mutual fund returns are generally calculated using compound interest. For a lumpsum investment, the formula is FV = P(1 + r/n)^(nt). For SIPs, it uses the future value of an annuity formula where each monthly installment compounds until the end of the term.

A lumpsum investment involves putting a large amount of money into a mutual fund in one go. A SIP (Systematic Investment Plan) involves investing a fixed amount at regular intervals (e.g., monthly). SIPs benefit from rupee cost averaging, which reduces the impact of market volatility.

No, mutual fund returns are not guaranteed. They are subject to market risks. The returns depend on the performance of the underlying assets (equity, debt, etc.) in the fund's portfolio. The rate of return used in this calculator is an expected/assumed rate for estimation purposes only.

Historically, long-term equity mutual funds in India have given around 10-14% annualized returns, while debt funds have given around 6-8%. However, this can vary based on market conditions and the specific fund you choose. It is always better to be conservative in your assumptions.

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