An exchange traded fund (ETF) is a type of mutual fund that typically follows a market index, such as the Nifty 50, or an asset, such as gold. Buying ETF units gives you exposure to the investments it holds without having to buy each one separately.

For example, a Nifty 50 ETF aims to track the Nifty 50 index. Instead of buying shares in each of its constituent companies yourself, you can buy units of the ETF.

You buy and sell ETF units on a stock exchange during trading hours, much like shares. Their market price changes throughout the day and may differ from their net asset value (NAV), which is the value of the fund’s assets after deducting liabilities, divided by the number of units.

An ETF calculator estimates how a monthly or one-time investment could grow over a selected period. Enter the investment amount, time period and assumed annual return to view the total amount invested, estimated returns and estimated maturity amount. 

An ETF is a mutual fund scheme whose units are listed and traded on a stock exchange. It typically tracks an index, commodity or another underlying asset, while its market price may change throughout the trading day. SEBI’s investor education resource explains how ETFs work, how they are traded and the factors investors should consider.

The ETF investment calculator uses your investment amount, time period and assumed annual return to estimate future value through compounding. You can adjust these inputs to compare different scenarios. The result is based on your assumptions rather than the performance of a specific ETF.

Formula for a lumpsum investment

For a lumpsum investment, the estimated maturity amount is calculated as: 

M = P × (1 + r)n 

Where: 

• M is the estimated maturity amount 

• P is the initial investment 

• r is the assumed annual rate of return 

• n is the investment period in years 

Formula for a monthly investment 

For a monthly investment, the estimated maturity amount is calculated as: 

M = P × [((1 + i)n - 1) / i] x (1 + i) 

Where: 

• M is the estimated maturity amount  

• P is the monthly investment  

• i is the assumed monthly rate of return  

• n is the total number of monthly investments   

This formula assumes that each monthly investment is made at the beginning of the month.

Use Bajaj AMC's ETF calculator in a few steps:

1. Select SIP for a monthly investment or Lumpsum for a one-time investment.  
2. Enter the Monthly investment or Investment amount.  
3. Choose the Time period.  
4. Set the Expected return (p.a.).  
5. View the Invested amount, Estimated returns and Estimated maturity amount.  
6. Adjust the inputs to compare different investment scenarios.   

Try more than one return assumption. A cautious estimate, a middle estimate and a higher estimate can give you a more useful range than a single projection.

Umang has ₹1,00,000 available for a one-time ETF investment and plans to stay invested for 10 years. To estimate its future value, he enters an assumed annual return of 10% in the calculator. 

Using the lumpsum formula: 

Estimated maturity amount = ₹1,00,000 × (1.10)10 

Based on these inputs, Umang’s estimated maturity amount would be approximately ₹2,59,374. 

• Amount invested: ₹1,00,000  

• Estimated returns: ₹1,59,374  

• Estimated maturity amount: ₹2,59,374   

This illustration assumes a constant annual return of 10%. Actual ETF returns will depend on market performance and may vary.

'The figures shown are for illustrative purpose only'

An ETF calculator helps you see how changes to your investment amount, duration and assumed return affect its estimated future value.

• Compare SIP and lumpsum investments: Explore monthly contributions and a one-time investment to see how each approach fits your plans.
• Understand the effect of time: Adjust the investment period to see how it changes estimated growth.
• Explore different return scenarios: Use an ETF return calculator to compare outcomes at different assumed rates.
• Plan for a financial goal: Compare the estimated value with your target amount, then adjust your contributions or timeline.
• See your contributions and growth separately: Understand how much of the estimated final value comes from the money you invest and how much comes from returns.

Use the calculator to compare key inputs and see how they shape the estimate: 

• Compare monthly and one-time investing: See how regular and one-time investments may grow over the same period.  

• Test different time horizons: Explore how giving an investment more time to compound can affect the estimated outcome.  

• Review return assumptions: Adjust the expected return to see how it changes the final amount.  

• Plan for a financial goal: Use the estimate as a starting point when planning for a long-term requirement.  

• Understand the result: View your invested amount and estimated returns separately from the estimated maturity amount.

The result looks precise. Markets are not. Unless stated otherwise, the estimate may not account for: 

• The ETF’s expense ratio, tracking difference or tracking error 

• Brokerage, statutory charges and applicable taxes 

• Bid-ask spreads or differences between the ETF’s market price and NAV 

• Cash left uninvested when the available amount cannot purchase whole units 

• Changes in the investment amount over time 

• Uneven or negative market returns 

The estimated maturity amount is therefore best used to compare scenarios, not predict future returns.

Several factors influence how an ETF performs and the return an investor receives:

Performance of the underlying asset 

An ETF’s return largely depends on the index, securities, commodity or other asset it tracks. Equity ETFs and gold ETFs, for instance, may respond differently to the same market conditions. 

Tracking difference 

An ETF’s return may differ from that of its benchmark due to expenses, portfolio rebalancing, cash holdings and trading costs. SEBI explains tracking error as a measure of how closely a fund or ETF tracks its benchmark. 

Expense ratio 

The expense ratio is deducted from the ETF’s assets and affects the return received by investors. 

Liquidity and bid-ask spread 

Liquidity can influence the price at which ETF units are bought or sold. A wider bid-ask spread increases the effective transaction cost. 

Investment timing 

A lumpsum investment is made at one market level, while monthly investments spread purchases across different levels. This reduces dependence on a single entry price. 

Investment period 

The investment period affects how long the money remains exposed to market movements and compounding. A suitable period depends on the ETF’s underlying asset, the investor’s goal and their risk appetite.

An ETF SIP and an ETF lumpsum differ mainly in how and when the money is invested: 

An ETF SIP calculator models periodic investments, while an ETF lumpsum calculator models a one-time investment made at the beginning of the selected period. ETF units are traded on the exchange at prevailing market prices, and periodic investment facilities may vary across brokers and platforms.

The expected return can significantly affect the estimate. Choose an assumption based on the ETF’s underlying asset and your investment period, rather than relying on its strongest recent performance. 

Compare three scenarios: 

• Cautious assumption: A more conservative estimate 

• Moderate assumption: A balanced estimate 

• Higher assumption: A more optimistic estimate 

This range can show how the investment plan may fare under different assumptions. If it works only in the higher scenario, consider revisiting the investment amount, time period or goal.

ETFs provide exposure to different asset classes and market segments, with each type carrying a distinct risk and return profile: 

• Broad-market equity ETFs: Track a broad equity index and provide exposure to its constituent companies. 

• Sector and thematic ETFs: Track indices focused on a particular sector, industry or theme, resulting in more concentrated exposure. 

• Debt ETFs: Track indices comprising government securities, corporate bonds or other debt instruments. 

• Gold and silver ETFs: Seek to track domestic gold or silver prices, subject to expenses and tracking difference. 

• International ETFs: Provide exposure to overseas markets or indices, with returns in rupee terms also influenced by currency movements. 

The category matters. A single expected return cannot represent the risk and return behaviour of every ETF.

If you sell ETF units at a profit, the gain attracts capital gains tax. The tax rate depends on the ETF category and how long you held the units. For resident individual investors, these rules apply for FY 2026–27:

The ₹1.25 lakh exemption covers your combined eligible long-term gains from equity shares, equity-oriented mutual funds and business trusts in a financial year. The equity ETF rates apply to sales subject to securities transaction tax (STT).

Specified mutual funds include funds investing more than 65% in debt and money market instruments. For debt ETF units bought before 1 April 2023, the usual holding-period rules for listed securities apply. Applicable surcharge and 4% health and education cess are additional.

An ETF return calculator estimates growth before tax. Factoring in ETF taxation helps you see how much of that gain you could retain.

Source: Income Tax Department provisions on equity capital gains, other long-term capital gains and specified mutual funds, applicable for FY 2026–27.

An ETF calculator can help with planning. Choosing an ETF requires a closer look at: 

• Its investment objective and underlying index or asset 

• Portfolio diversification and concentration 

• Tracking error and tracking difference 

• Expense ratio 

• Liquidity, including trading volumes and bid-ask spread 

• Scheme and benchmark Risk-o-meters 

• Alignment with your goal, investment period and risk appetite 

• Brokerage, taxes and other transaction costs 

Review the latest Scheme Information Document and Key Information Memorandum for scheme-specific details.