Determine the initial investment amount
Note the current or ending value of the mutual fund
Add any dividends or capital gains distributions received
Subtract any fees, loads, or taxes paid
Calculate total gain by using: ending value + distributions – initial investment – costs
Calculate return percentage by using: total gain ÷ initial investment × 100
For annualized return, use the holding period and apply the appropriate annualized return formula
For systematic investments, calculate time-weighted return or use the average cost basis method as needed
For after-tax return, subtract applicable taxes from gains and distributions before calculating return
Compare the result with the fund’s benchmark or category average if needed