Abstract The present study aims to identify the suitable tip clearance and volumetric flow rates for low-speed axial flow fans. The performance of an axial fan depends on various parameters like fan speed, available tip clearance gap, volumetric flow rate, power consumption, and working fluid. Leakage flow occurring at a rotating component such as a blade and solid casing of a ducted axial fan is typically linked to losses and the potential emergence of a rotating stall. The numerical analysis for this study uses the Reynolds Averaged Navier–Stokes equations with the k-omega SST turbulence model to perform the steady-state simulations by varying tip gap and volumetric flow rate. The results proved that the optimum performance was obtained with a tip clearance gap of 1 mm, and maximum fan efficiency was achieved at a volumetric flow rate of 3.9–4.5 m3/s. The novelty of this proposed work is to enhance the efficiency of axial flow fans with circular arc-cambered aerofoils using optimum tip clearance and volumetric flow rate through steady-state simulations. This method can be used in turbomachinery to improve fan performance.