Mutual Fund Return Calculator
Calculate the future value of a lump sum mutual fund investment with expected returns.
Total value
$102,646
Mutual funds are a popular avenue of investment in the United States. As of 2019, open-end mutual funds managed assets totaling approximately $21.3 trillion, representing a significant share of the investment market.
Although mutual fund investments are subject to market risks, their returns can be estimated with reasonable accuracy. You can use our free mutual fund return calculator to project the expected future value of your investment.
How Can a Mutual Fund Return Calculator Online Help You?
There are various types of mutual fund returns that an investor should be familiar with, including absolute return, annualized return, total return, trailing return, point-to-point return, and rolling return.
It can be challenging for a prospective investor to keep track of all these factors. That's where a mutual fund return calculator can be immensely helpful. It provides you with full estimates for 1-year, 3-year, and 5-year investment periods, enabling you to plan your financial future. The tool is simple to use—even beginners will find it easy to navigate.
How Does a Mutual Fund Total Return Calculator Work?
A mutual fund calculator is a practical financial tool that enables an investor to calculate the returns yielded by investing in mutual funds. Broadly, there are two ways to invest in mutual funds: a one-time lump sum investment or systematic investments via Dollar Cost Averaging (DCA).
In a systematic investment plan (DCA), an investor contributes a fixed amount at regular intervals. For example, if you invest $100 each month when the Net Asset Value (NAV) is $10, you purchase 10 units. If the NAV increases to $20 the following month, your $100 buys only 5 units.
An online calculator predicts the returns on your systematic investment based on specific parameters. You simply need to input the periodic investment amount, the duration of the investment, and the expected rate of return, and the calculator will deliver results within seconds.
For a lump sum investment, since you invest all at once, fluctuations in NAV do not affect the number of units purchased. You need to input three key data points: your initial investment amount, the estimated annual ROI, and the duration of your investment.
Estimated Returns on Key Fund Categories
Mutual funds in the U.S. are broadly categorized into equity funds, bond (fixed income) funds, and balanced/hybrid funds. Below are examples of each category along with historical return estimates:
Equity Funds
| Fund Name | Risk | 1-Year Return | 3-Year Return |
|---|---|---|---|
| Vanguard 500 Index Fund | Moderate | 10.5% | 12.8% |
| Fidelity Contrafund | High | 9.2% | 11.5% |
| T. Rowe Price Blue Chip Growth Fund | High | 11.0% | 14.0% |
Bond Funds
| Fund Name | Risk | 1-Year Return | 3-Year Return |
|---|---|---|---|
| Vanguard Total Bond Market Fund | Low | 4.5% | 3.8% |
| PIMCO Income Fund | Moderate | 5.2% | 4.6% |
| Fidelity U.S. Bond Index Fund | Low | 4.0% | 3.5% |
Balanced/Hybrid Funds
| Fund Name | Risk | 1-Year Return | 3-Year Return |
|---|---|---|---|
| Vanguard Wellington Fund | Moderate | 8.0% | 9.5% |
| Fidelity Balanced Fund | Moderate | 7.5% | 8.8% |
| T. Rowe Price Capital Appreciation Fund | Moderate | 9.0% | 10.2% |
When you use a mutual fund return calculator, you will need to input these variables along with your investment duration to calculate your expected future value.
How to Use Our Calculator
Our online mutual fund return calculator is exceptionally easy to use:
- Enter the amount you have invested.
- Input the expected annual rate of return.
- Specify the number of years for which you plan to invest.
The calculator will then display the appreciated value of your investment at the end of the specified period.
Advantages of Using Our Online Mutual Fund Calculator
- It provides a fairly accurate estimate of the returns on your mutual fund investments.
- It saves you valuable time by eliminating manual calculations.
- Being an online tool, it is accessible from anywhere, making it incredibly convenient for on-the-go financial planning.
Mutual funds continue to grow in popularity as an investment vehicle in the United States. Although there is some inherent risk, the potential for higher returns makes them an attractive option for long-term financial planning.