Lumpsum Calculator
This Mutual Fund Calculator helps estimate potential returns based on your investment amount and expected annual returns. Results may vary depending on the fund's performance and market conditions. For more accurate projections, please consult with a financial advisor.
Est Return
Total Investment
Total Amount
0.00Nowadays investing in Mutual Funds is a very popular way to build wealth because they provide a mix of different investments, and the expert manages these, and also can offer a good return over time.
What is a Mutual Fund Calculator?
The Mutual Fund Calculator is an online tool that helps you estimate how much your investments might grow over some time. So the calculator's potential returns are based on how much you invest in MF, and also for how long you invest, and the expected return rate.
How does a mutual fund calculator Work?
Our mutual fund calculator uses a formula called CAGR which stands for Compounded Annual Growth Rate. It estimates how much your investment could grow in the future, so compounding means that your return starts earning more money over some time, as this helps your investment to grow faster.
So here is the general formula a mutual fund calculator uses:
“Future Value (FV) = P x (1+ r/n)^(nt)”
Where,
P: Principal amount (initial investment)
r: Expected annual rate of return
n: Number of times the interest is compounded per year
t: Number of years of investment
Example of Mutual Fund Calculator
Here are how to calculate the future value of your investment:
Where inputs are,
- Investment Amount (principal): INR 8,00,000
- Investment Period: 12 Years
- Expected Rate of Return: 12 % per annum
So using the compounded annual growth rate (CAGR) formula:
“Future Value (FV) = P x (1+ r/n)^(nt)”
Where,
P = INR 8,00,000 which is an initial investment
r = 12% or 0.12 which is an expected rate of return
n = 1 is a compounded annually
t = 12 years is the investment duration
Future Value Calcultation:
FV = P x (1+ r/n)^(nt)
= 8,00,000 x (1 + 0.12/ 1) (1x12)
= 8,00,000 x (1.12) 12
= INR 31,16,781 approx
Result: If you invest a lump sum of INR 8,00,000 for 12 years, your investment could grow to INR 31,16,781 at the end of 12 years.
How to use the RWR MF Calculator?
Well, using a mutual fund calculator is straightforward, so here is the step-by-step information, to make your work easy:
- First, enter the total investment amount so just input how much you want to invest.
- The adjust the expected rate of return, just input the anticipated return based on the performance of the fund you are investing in.
- Then adjust the investment period, so this indicates how long you plan to stay invested, so this could range from a few months to several decades.
- Now, review your results, the calculator which will instantly display the potential value of your investment at the end of the tenure.
Also, Check - SIP Calculator
Benefits
Here are the benefits of using a mutual fund calculator:
- This calculator is user-friendly and easy to use even for beginners, so you only need to input your investment details, and the tool does all the calculations instantly.
- This visualizes the power of compounding, this compounding can significantly increase your wealth over time, so the calculator lets you visualize how your investment grows when the earnings are reinvested, and helps you grasp the importance of long-term investments.
- Here you have accurate financial information and planning, as mutual funds help you determine how much you need to invest to achieve your financial goals, so by adjusting variables like investment time or expected rate of return, you can map out realistic plans to meet future expenses.
- Using the RWR calculator can help you with strategy optimization. The investors can compare the diverse investment strategies. So this can help you in choosing a strategy that is aligned with your financial goals and your risk tolerance.
- Here you can set realistic expectations, where you can input various return rates, then a mutual fund calculator which helps you to avoid unrealistic expectations.