Mutual Fund Calculator

What Is Mutual Fund Calculator?

Investors can get to know the future value and returns of the amount they invested in any mutual fund based on their investment strategy, through an online tool that is known as a mutual fund calculator.
A goal-oriented approach should ideally be adopted by a mutual fund investors while making their investment. Here the role of the Mutual Fund Calculator comes in use to understand why and how the investors will achieve their goals in the time horizon, with the best rate of return based on their planned amount invested.

What Input Does Mutual Fund Calculator Take?

The mutual fund return calculator gives reasonable input to the investors, based on which the investor can plan their future investments to achieve oriented goals. It requires only three ingradients:
Your investment amount (monthly SIP or lumpsum),
Time horizon, and
A rate of return based on your investment strategy.

Mutual Fund Calculation Formula

SIP Investment

M = A [ (1 + i)n – 1] x (1 + i)/i

M = Maturity amount
A = SIP contribution per period
i = Rate of return
n = Holding period (in months)

Note: For daily/weekly SIPs, adjust i and n accordingly.

Lumpsum investment

M = P (1 + r/100)n

M = Maturity amount
P = Principal amount
r = Estimated rate of return
n = Holding period (in years)

You should know two things about both formulas.

For SWP or Lump Sum investment, CAGR (Compound Annual Growth Rate) formula is being used while the one used in the SIP, formula is XIRR (Extended Internal Rate of Return).

CAGR works only for calculating returns on a point-to-point basis. While in the case of multiple cash flows (like in the case of SIP), XIRR is being used, because the returns for each cash flow will differ. XIRR helps in calculating a single return percent for all cash flows and is, therefore, relevant to SIPs.
If you are keen to learn more about this, click on XIRR and CAGR to know more.

The fund house deducts their commission from the investor’s returns based on the scheme investors choose i.e. a direct or regular plan.
When investors invest through the regular mode (i.e., through a broker, advisor, or distributor) fund house deducts their commission.
Since a direct plan doesn’t involve an intermediary, hence no need to pay any commission, which reduces the expense ratio and translates to relatively higher returns.
Most investors want to go with a direct plan when choosing mutual fund schemes in India because they see relatively higher returns still it is advisable to go for a regular plan if you are a first-time investor.

Type Of Mutual Fund Calculator

  1. SIP Calculator
  2. Lump Sum/SWP Calculator

Systematic Investment Plan Calculator

Lump Sum Investment/Systematic With-Drawel Plan Calculator

Key Takeaways

  • When you invest in equities, your portfolio will not necessarily keep rising or shoot upwards consistently because the fact is, investments are like roller coaster rides. You never know when the roller coaster will incline upwards or when it will dip downwards.
  • Throw the Short-Term mindset out the window and hold your investments for longer periods of time.
  • Be sure to choose the most appropriate and efficient mutual funds and only invest in mutual funds where the expense ratio is not extremely high so that ultimately you can receive a great amount of return. 
  • To take advantage of Compounding, you should consider starting early in the investment sector. 


One should point to note that money is abundant in nature. You might have heard the saying, “Paisa Paise Ko Kheechta Hai”. It means that money generates more money through its progeny.

Thus, compounding is a complicated yet simple concept that is extremely powerful in nature. Individuals who get to know it right might not have to worry about retirement or other times when age isn’t on their side.

Know More On Mutual Fund

Dutt Anand Nayak
Dutt Anand Nayak
Articles: 18

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