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MUTUAL FUND CALCULATORS: Calculate Mutual Fund Returns

A mutual fund calculator or mutual fund return calculator is a financial tool that allows investors to calculate the estimated returns on their mutual fund investments. To simplify, it is a tool that predicts the overall returns that an individual would receive from a mutual fund investment upon maturity. It factors in the expected rate of return and the principal amount along with the investment tenure to make the calculations. For good measure, some calculators also offer the option to adjust the returns against inflation to provide a more realistic number. Moreover, it takes both investment routes, i.e., Systematic Investment Plan (SIP) and lumpsum mode, into account. Use the below calculators to calculate returns on your mutual fund investment.

About SIP calculator

Under the SIP methodology, an investor invests a fixed amount at specific intervals for a given period. An SIP calculator is a financial tool that helps investors calculate the expected returns on their SIP investments. You can use this tool to calculate how much you would need to invest to achieve the target corpus.

How to use an SIP calculator to calculate mutual fund returns?

Using an SIP calculator is quite easy. You need to feed in the following information for the calculator to process, namely:

  1. Investment amount
  2. Investment periodicity (weekly, bi-weekly, monthly, etc.)
  3. Investment tenure
  4. Expected rate of return

An investor has to input the values against these boxes and the SIP calculator will estimate the future value of your investment. Some SIP calculators also include an additional option known as the 'Adjust for Inflation' button. You can use this button if you want to know the future value of your investment after being adjusted for inflation. This gives you a more realistic outlook on the estimated returns and helps you plan accordingly.

About lumpsum calculator

Under a lumpsum investment, an investor makes an individual investment in a particular mutual fund scheme in a single transaction. A lumpsum calculator is a financial tool that calculates the estimated returns made on such lump sum investments, i.e. it provides the maturity amount for a given present value.

How to use a lump sum calculator to calculate returns on mutual fund investments?

A lump sum investment return calculator is an automated tool that does all the complicated math for you. Usually, An investor needs to enter the following details next to each slot:

  1. Investment amount
  2. Investment tenure
  3. Expected rate of returns

Once the above inputs are made, the lumpsum calculator will calculate the maturity value of the mutual fund investment.

How does a mutual fund calculator help you?

  1. A mutual fund calculator provides you with the estimated returns for the investment tenure, be it 1-year, 3-years, etc.
  2. It is a free tool that is available to investors. It is quite convenient to use and even a layperson can use it with relative ease.
  3. A mutual fund calculator helps investors plan and manage their finances better once they have an estimated idea of the future value of their investments.
  4. It offers reasonably accurate returns on your mutual fund investments. However, one should note that as mutual fund investments are subject to market risks, one cannot predict the returns with pinpoint accuracy.

The formula of calculating returns via mutual fund return calculator

SIP calculator

An SIP calculator works on the following formula:

FV = (P * ((returns / 100) / 12)) / (Math.pow((1 + ((returns / 100) / 12)), (year * 12)) - 1);


FV = Future value of the investment

P = SIP investment amount

Let’s understand this with the help of an example:

Megha wants to invest Rs1,000 per month for 12 months. The expected rate of interest on this investment is 12% pa (per annum). Thus, the future value of her investments (M) would be:

M = 1,000 X ({[1 + 12%]12 – 1} / 12%) x (1 + 12%)

Therefore, M = Rs25,293 (approx)

Instead of having to compute complex calculations, Megha can simply use a mutual fund return calculator to save time and effort.

N.B.: The rate of interest on an SIP investment will differ as per market conditions and may increase or decrease.

2. Lumpsum calculator

A lumpsum calculator works on the following formula:

A = P (1 + r/n) ^ nt


A = estimated returns

P = Present value of investment

r = estimated rate of return

t = tenure

n = number of compound interests in a year

Let’s understand this with the help of an example.

Sonia makes a lumpsum investment of Rs20 lakh in a mutual fund that offers average returns at the rate of 12% pa. The duration for her investment is 5 years that compounds every 6 months.


P = 20,00,000

r = 12/100

t = 5

n = 2

Therefore, the estimated future returns, in this case, would be:

A = 20,00,000 (1 + 12/100*2) ^ 2*5

A = Rs35,81,695 (approx)

Instead of having to make complex calculations, Sonia can simply use a lumpsum calculator to save time and effort.

What are the benefits and advantages of mutual fund investments?

Following are some of the benefits and advantages of investing in mutual funds:

1. Professional management

Mutual funds are professionally managed by experts known as fund managers. They track the market and distribute the investments across asset classes to meet the fund’s objective. With the help of strong research teams and their expertise, these fund managers identify the winning securities, buy them at the right time, and most importantly, know when to exit.

2. Reasonable returns

Mutual funds offer the right avenue for investing in various market-linked instruments that have potetnail to offer reasonable returns

3. Disciplined investing

It’s a good habit to invest that could help for a good future. You can invest in mutual funds through a Systematic Investment Plan (SIP). SIPs ensure that you are committed to investing, which instils financial discipline among investors. This discipline is required to make a productive action plan that could help to develop a good future.

4. Diversification

You might be well-versed with the adage – ‘Don’t pull all your eggs in one basket’. It holds true for mutual fund investments as well and is the premise of diversification. Diversification means spreading your investments across various asset classes to mitigate loss. Consult an expert to understand how to balance your portfolio by selecting the ideal securities to meet your investment goal(s).

5. Tax-saving advantages

Apart from capital appreciation, mutual funds have the potential to offer tax benefits to investors as well. Under Section 80C of the Income Tax Act, 1961, if you invest in equity-linked savings schemes (ELSS), you can save up to Rs 46,800 each financial year.

6. Convenience

Investing in mutual funds today is a piece of cake. The whole process can be done online through various entities such as CAMS (Computer Age Management Services), AMCs (Asset Management Companies), or designated ISCs (Investor Services Centres). You can even track the performance of your portfolio with just a few clicks.

7. Well-regulated

In India, mutual fund investments fall under the purview of the Securities and Exchange Board of India (SEBI). All Indian capital markets, including mutual funds, are required to follow transparent processes, as laid down by SEBI, which protect the interest of the investors. Further, SEBI guidelines make it mandatory for all mutual funds to disclose scheme details each month.

In a nutshell, a mutual fund returns calculator calculates the future worth of your present investment upon maturity after considering various key variables such as the type of investment (SIP or lumpsum), tenure of investment, and the expected rate of return. Happy Investing!

An investor education and awareness initiative by Franklin Templeton Mutual Fund

    1. One-time KYC (Know Your Customer) : One-time KYC registration is mandatory to invest in mutual funds. You can complete the same by submitting the following at any of our branches or collection centres: a) Duly filled and signed Central-KYC application form. b) Proof of Identity: Any document notified by the central government. c) Proof of Address: Same as identity proof (except PAN). d) Recent Passport Size Photograph. Copies of all documents submitted must be self-attested by the applicant and accompanied by originals for verification. You may also avail our Online KYC Registration facility while opening an online account with us, for more details please visit our website In case you are KYC verified and want to update any information, please submit a completed KYC details change form with the required self-attested documents as proof to our nearest branch or collection centre
    2. Details of SEBI registered Mutual Funds: Investors must deal/ invest only with SEBI registered Mutual Funds. Details available on the SEBI website
    3. Complaint Redressal: Investors can reach us on our toll-free helpline 1800 425 4255 OR write to us at For escalation, write to us at; or lodge your grievance with SEBI through their SCORES (SEBI Complaint Redress System) Portal at

Mutual Fund investments are subject to market risks, read all scheme related documents carefully.