The NAV calculator is a free online fund which will help you determine what number of mutual fund units your money will purchase and the current NAV value of those units. Just enter the amount of investment and the NAV of the fund and the answer will appear with no formulas, spreadsheet or sign-up. This SIP calculator for mutual funds assists you in comprehending your investments in mere seconds, whether you're making your initial SIP or replenishing a lumpsum investment. Below you'll find what NAV means, a formula to explain the calculator, a step-by-step and a worked example, as well as a couple of common errors to avoid making.
What Is Net Asset Value (NAV)?
The price of one unit of a mutual fund is called its "Net Asset Value" (NAV). A fund is a collection of funds from a number of investors and invests in stocks, bonds or other assets. NAV is a unit price of your pool on a specific date.
NAV = (Total Assets − Total Liabilities) ÷ Number of Outstanding Units
Fund houses calculate NAV after the markets, every day of the business day and purchase and redemption is done at the NAV calculated by the fund house. NAV fluctuates daily in accordance with one of the underlying holdings, which do fluctuate.
One popular misconception is that the NAV is lower at ₹15 as compared to ₹150. It is not. It is important that the NAV increases over time, not that it begins at a certain level.
NAV Calculator Formula
The calculator is based on two easy-to-remember formulas:
Units = Investment ÷ NAV
Value = Units × Current NAV
The first one tells you how many units you will get with the sum that you invest. The second will let you know the value of those units in current NAV. They can together answer two questions which every investor asks: “How much did I buy?” and “What is it worth now?”
How to Calculate Units Bought
Use the NAV on purchase date to divide the investment. For example, ₹10,000 at a NAV of ₹20 gives you 500 units.
How to Calculate the Current Value of Your Holdings
Multiply the units by the last NAV. For example, 500 units at a NAV of ₹24 are worth ₹12,000.
How to Use the NAV Calculator Online
It only takes less than a minute to use the calculator:
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Fill in the investment amount (₹).
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Fill in the NAV of purchase (₹).
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You can enter the current NAV (₹) to display the current value.
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Read the result at a glance, and customize any value to investigate scenarios.
The topstockbroker’s NAV calculator refreshes in real time as you alter any input and you can then test out both various quantities and NAVs without redoing the calculations. The NAV of the fund can be obtained from your investment app or fund house website. It is a free, non-registered tool that can be used on mobile and desktop.
NAV Calculation Example
Suppose you invest ₹50,000 in a fund when its NAV is ₹25.
|
Step |
Calculation |
Result |
|---|---|---|
|
Units bought |
₹50,000 ÷ ₹25 |
2,000 units |
|
Value at NAV ₹32 |
2,000 × ₹32 |
₹64,000 |
|
Gain |
₹64,000 − ₹50,000 |
₹14,000 (28%) |
Your unit count stays at 2,000, and only the value of those units changes as the NAV moves. Enter these numbers in the calculator above to see the same result, then replace them with your own.
Benefits of Using a Mutual Fund NAV Calculator
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Determine the number of units purchased of any investment amount.
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Keep an eye on the number of shares that you now own.
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Discover the impact that NAV changes have on your finances.
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Eliminate human mistakes and save time doing repetitive calculations
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Compare various situations in pairs.
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It can be used without registration, and is available for free on any device.
The calculator also has the ability to change its result in real-time, making it a learning instrument as well. It helps develop an understanding of the impact of quantity and of the NAVs on both dates on your final value.
Things to Keep in Mind
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Avoid choosing a fund with a low NAV. An expensive or cheap fund is not a good indication of the NAV. Take into account long term returns, expense ratio, risk and fund quality.
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The results are based on the input and the solution. At the time of purchase use the same NAV as the date of purchase, and use the most up to date NAV as of the current value.
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Please note that there is no cost included. What you actually receive may change due to Exiting load, stamp duty and taxes.
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When viewing the output, it is advisable to consider this as an approximation. When it comes to tax-related decisions or huge sums, consult a financial adviser who is registered with the Securities and Exchange Board of India (SEBI).
Start Investing with Confidence
So you have an idea of how many units your money can purchase and how much they are worth, put that knowledge to use! Start investing in mutual funds now with a Free Demat Account!
Please note that the NAV Calculator is for information and educational purposes only and is not designed to be investment, tax or financial advice. Mutual fund investments are at investment risk.