XIRR Calculator

XIRR (Extended Internal Rate of Return) is a powerful metric that calculates the annualized return on investments where cash flows occur at irregular intervals. Unlike simple returns or CAGR, XIRR considers the exact timing of each transaction.

Why it matters: When you invest through SIPs (Systematic Investment Plans), each monthly contribution has a different holding period. XIRR gives you the true annualized return by weighing each investment by how long it was invested. This makes it the most accurate measure for evaluating mutual fund SIPs and other recurring investments.

Our XIRR calculator helps you understand the true performance of your investments where multiple transactions occur over time.

Key Benefits:

• Accurate Returns: Get the true annualized return that accounts for the timing of each investment
• SIP Evaluation: Perfect for calculating returns on your mutual fund SIPs
• Compare Investments: Compare different investment strategies using a standardized metric
• Portfolio Analysis: Evaluate your overall portfolio performance including additions and withdrawals
• Informed Decisions: Use precise data to decide if your investment strategy is working

CAGR (Compound Annual Growth Rate) is suitable for lumpsum investments where you invest once and withdraw once. However, for SIPs and investments with multiple cash flows, XIRR is the appropriate metric.

CAGR Limitations:

• Only considers initial and final values
• Ignores timing of intermediate cash flows
• Can be misleading for SIPs and regular investments

XIRR Advantages:

• Considers exact dates of all transactions
• Gives true annualized return for multiple cash flows
• Industry standard for mutual fund SIP returns
• Used by all major fund houses and financial advisors

Example: If you invested ₹10,000 monthly for 3 years and received ₹5,00,000 at maturity, CAGR would calculate based on total invested vs final value, but XIRR correctly accounts for the fact that your first investment was invested for 36 months while your last was invested for just 1 month.

Using our XIRR calculator is straightforward:

Step 1: Select Investment Frequency

Choose how often you invest - Monthly, Quarterly, Half-Yearly, or Yearly. Most SIP investors should select Monthly.

Step 2: Enter Start Date

Input when you started your investment. This is the date of your first SIP installment.

Step 3: Enter Maturity Date

Input when you want to evaluate your investment or when you plan to redeem.

Step 4: Enter Investment Amount

Input your recurring investment amount (e.g., monthly SIP amount).

Step 5: Enter Maturity Amount

Input the current or expected value of your investment at the maturity date.

Step 6: View Results

See your XIRR percentage, total invested, and returns breakdown instantly.

You can also calculate XIRR in Excel using the built-in XIRR function:

Excel Formula: =XIRR(values, dates, [guess])

Steps:

1. Create a column with all cash flows (investments as negative, redemption as positive)

2. Create another column with corresponding dates

3. Use the XIRR formula: =XIRR(A1:A37, B1:B37)

Example Layout:

| Date | Amount |

|------------|-----------|

| 01-Jan-21 | -10,000 |

| 01-Feb-21 | -10,000 |

| ... | ... |

| 01-Jan-24 | +5,00,000 |

Formula: =XIRR(B1:B37, A1:A37)

Important: Investment amounts should be negative (outflow), and the final redemption amount should be positive (inflow).

XIRR is the ideal metric in these scenarios:

1. SIP Investments

When you invest a fixed amount regularly through a Systematic Investment Plan.

2. Irregular Investments

When you invest varying amounts at different times.

3. Multiple Transactions

When your investment involves additions and partial withdrawals.

4. Comparing Fund Performance

When you want to compare how different funds have performed for your specific investment pattern.

5. Portfolio Evaluation

When assessing your overall investment portfolio with multiple inflows and outflows.

When to Use CAGR Instead:

• Lumpsum investments with single entry and exit
• Evaluating fund performance for a hypothetical lumpsum
• Quick comparison of fund returns over fixed periods

1. True Performance Measure

XIRR gives you the actual annualized return on your investment, accounting for the time value of money.

2. Industry Standard

Used by fund houses, financial advisors, and regulatory bodies for reporting SIP returns.

3. Multi-Currency Support

Calculate XIRR in INR, USD, or AED - perfect for NRIs investing across currencies.

4. Flexible Frequencies

Support for monthly, quarterly, half-yearly, and yearly investment patterns.

5. Instant Results

No need for complex Excel formulas - get your XIRR instantly.

6. Better Decision Making

Make informed decisions about continuing, increasing, or switching investments based on accurate returns data.

7. Compare Across Investments

Use a standardized metric to compare returns across different investment types and strategies.