XIRR Calculator
XIRR, or Extended Internal Rate of Return, is the most accurate way to measure the annualized return on an investment when money has gone in or come out at different points in time — exactly what happens with SIPs, top-up investments, partial withdrawals, or multiple lump sum purchases in the same mutual fund. Unlike a simple CAGR calculation, which only works for a single investment made on a single date, XIRR can handle any number of cash flows on any dates.
Our XIRR Calculator lets you add each investment transaction with its date and amount, enter your current investment value along with the date you're valuing it on, and instantly calculates your true annualized return, accounting for exactly when each rupee was invested.
XIRR Calculator Formula
XIRR solves for the discount rate that makes the Net Present Value (NPV) of all cash flows — each investment (as a negative outflow) and the final value (as a positive inflow) — equal to zero:
0 = Σ [ CFᵢ / (1 + r)^(dᵢ / 365) ]
Where:
- CFᵢ = Cash flow amount on transaction i (negative for money invested, positive for money received or the current value)
- dᵢ = Number of days between the first cash flow date and the date of transaction i
- r = XIRR — the annualized rate we are solving for
Because this equation cannot be solved directly with simple algebra, XIRR is calculated using an iterative numerical method (the Newton-Raphson method), which starts with an estimated rate and repeatedly refines it until the calculated NPV is as close to zero as possible. This is exactly what our calculator does behind the scenes.
Example Calculation
Suppose you made the following mutual fund investments and want to know your annualized return as of 1 January 2026:
| Date | Transaction | Amount |
|---|---|---|
| 1 Jan 2023 | Investment | − ₹50,000 |
| 1 Jul 2023 | Investment | − ₹30,000 |
| 1 Jan 2024 | Investment | − ₹20,000 |
| 1 Jan 2026 | Current Value | + ₹1,50,000 |
Total amount invested across the three transactions is ₹1,00,000, and the investment is worth ₹1,50,000 as of 1 January 2026. Running these four cash flows through the XIRR formula (solved iteratively) gives:
XIRR ≈ 16.43%
This means the investment has grown at an annualized rate of approximately 16.43% per year, correctly accounting for the fact that the ₹50,000 had more time to grow than the ₹20,000 invested a year later. A simple CAGR calculation using only the first and last amounts would have given a misleading figure, since it can't account for the staggered investment dates.
FAQs about XIRR Calculator
What is XIRR in mutual funds?
XIRR (Extended Internal Rate of Return) is the annualized rate of return on an investment that has multiple cash flows occurring on different dates, such as SIP installments, additional lump sum investments, or partial withdrawals. It gives a single annualized return figure that accounts for the exact timing of every transaction.
What is the difference between XIRR and CAGR?
CAGR works only for a single investment made on one date and redeemed on another date. XIRR is a more general version that can handle multiple investments and withdrawals on different dates, which makes it the correct metric for SIP investments and any portfolio with irregular cash flows.
How is XIRR calculated for SIP investments?
For a SIP, every monthly installment is treated as a separate negative cash flow on its own investment date, and the current value of the investment is treated as a single positive cash flow on the valuation date. The XIRR formula is then solved iteratively to find the annualized rate that makes the present value of all these cash flows equal to zero.
Can XIRR be negative?
Yes. If your investment is currently worth less than the total amount you invested, or if it has grown very little relative to the time invested, the calculated XIRR can be negative, reflecting a loss on an annualized basis.
Is XIRR the same as the actual profit I've made?
No. XIRR is an annualized percentage return, not an absolute profit figure. Your absolute gain is simply Current Value minus Total Invested, while XIRR expresses how fast that gain has grown per year, accounting for when each rupee was invested — which is why the two numbers can look very different for the same investment.
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