XIRR Calculator

What is XIRR and how the calculator works

XIRR (Extended Internal Rate of Return) is the single annualised return rate
that accounts for multiple investments and withdrawals made on different dates.
It is the correct way to measure returns when your money goes in and out at
irregular intervals — exactly what happens with a SIP, a lumpsum top-up, or a
partial redemption.

A simple percentage gain ("absolute return") can't handle this, because ₹10,000
invested 5 years ago and ₹10,000 invested last month have not earned the same
way. XIRR weights every cash flow by how long it was actually invested, then
gives you one comparable annual rate. This XIRR calculator does that maths
instantly — you enter each amount with its date, and it returns your true
annualised return.

How to calculate XIRR — the formula

XIRR is the rate r that makes the net present value of all cash flows equal
to zero:

0 = Σ [ CFᵢ ÷ (1 + r)^((dᵢ − d₀) ÷ 365) ]

Where:

• CFᵢ = each cash flow (investments are negative, redemptions/maturity value
  are positive)
• dᵢ = the date of that cash flow
• d₀ = the date of the first cash flow
• r = the XIRR you're solving for

Why you can't calculate XIRR by hand

Unlike a simple EMI or CAGR formula, there is no closed-form solution for
XIRR. The rate appears inside every term, so it must be found by iteration —
the calculator (like Excel's XIRR function) guesses a rate, checks whether the
present value lands on zero, and adjusts until it converges. This is why a tool is
essentially required: doing it manually means repeatedly solving the whole
equation by trial and error.

XIRR vs CAGR vs absolute return — which to use

• Absolute return = total gain ÷ amount invested. Ignores time entirely. Only
  meaningful for a single investment held for a known period.
• CAGR = compound annual growth rate. Correct for a single lumpsum in and a
  single value out, but it can't handle multiple dated cash flows.
• XIRR = the general case. Use it whenever there is more than one investment
  date or any withdrawal — SIPs, staggered lumpsums, partial redemptions,
  dividend reinvestments. For a single in-and-out investment, XIRR and CAGR give
  the same answer.

Four things Indian investors get wrong about XIRR

1. Comparing SIP returns using absolute return. A SIP's absolute return always
   understates performance because recent instalments were invested for only a
   few months. Always judge a SIP by XIRR.
2. Forgetting the sign convention. Investments must be entered as negative and
   redemptions as positive. Getting this wrong produces a meaningless result.
3. Using the wrong dates. XIRR is date-sensitive. Use the actual transaction
   dates, not approximate months, for an accurate figure.
4. Treating a very high XIRR over a short period as sustainable. A 30% XIRR
   measured over 4 months is annualised — it does not mean you'll earn 30% a year.

When to use this XIRR calculator

Use it to check the real return on a mutual fund SIP, compare two funds fairly,
measure a portfolio with staggered buys, or evaluate any investment where you put
money in (or take it out) on more than one date.