XIRR Calculator
Calculate annualized returns on irregular cash flows
Cash Flow Entries
Use negative amounts for investments (outflow) and positive amounts for redemptions (inflow).
How to Use
XIRR Results
XIRR Calculator
The XIRR (Extended Internal Rate of Return) Calculator helps investors calculate the annualized return on investments with irregular cash flows. Unlike simple return calculations, XIRR accounts for the exact timing of each investment and redemption, giving you the most accurate picture of your portfolio performance.
Key Components
- Cash Flow Dates
- Cash Flow Amounts (Investments and Redemptions)
- Annualized Return Rate (XIRR)
- Total Investment and Redemption
- Net Profit/Loss
How It Works
XIRR uses the Newton-Raphson iterative method to find the discount rate that makes the net present value of all cash flows equal to zero:
- NPV = Sum of [Amount_i / (1 + r)^((Date_i - Date_0) / 365)] = 0
- Negative amounts represent investments (outflows)
- Positive amounts represent redemptions (inflows)
- The algorithm iterates until convergence to find the rate r
Benefits
- Accurate annualized returns for SIP investments
- Accounts for irregular investment timing
- Compare performance across different investment types
- Evaluate mutual fund SIP returns accurately
- Make data-driven portfolio allocation decisions
Using the Calculator
Enter your cash flows with their respective dates. Use negative amounts for investments (money going out) and positive amounts for redemptions (money coming in). The calculator will compute your XIRR, showing the effective annualized return on your investments.
Why XIRR Is Essential for SIP Investors
Mutual fund statements often show absolute returns, which can be misleading for SIP investments. XIRR gives you the true annualised return accounting for the timing and amount of each investment. Enter your SIP dates and amounts along with the current portfolio value to see your real returns.
Frequently Asked Questions
What is XIRR?
XIRR (Extended Internal Rate of Return) calculates the annualised return on investments with irregular cash flows. It is the most accurate return metric for SIP investments, where money is invested at different dates and amounts over time.
How is XIRR different from CAGR?
CAGR works for a single lump sum investment with one start and end date. XIRR handles multiple cash flows at different dates (like monthly SIPs, additional purchases, partial redemptions). For SIP investors, XIRR is the correct metric to use.
What is a good XIRR for SIP investments?
For equity mutual fund SIPs held over 5+ years, an XIRR of 12-15% is good, and above 15% is excellent. XIRR can be misleading for very short periods, so evaluate only for SIPs running at least 3 years.
