XIRR / IRR Calculator
Statutory Framework: FY 2026-27 Benchmarks (CBDT / RBI / SEBI) · Deterministic Math Engine
XIRR / IRR Calculator
Key Takeaway
XIRR (Extended Internal Rate of Return) is the only accurate way to measure SIP returns because it accounts for the exact timing and amount of each cash flow , unlike simple CAGR or absolute returns.
Transaction History
💡 Rule: Enter investments as negative values (e.g. -1,00,000) and payouts, redemptions, or final portfolio valuations as positive values (e.g. 2,60,000).
Calculated XIRR
Annualized Internal Rate of Return
XIRR vs Simple Returns
Simple absolute returns assume all money was invested on Day 1. XIRR computes the time-weighted rate of return, taking into account when each cash flow actually occurred, which is much more accurate for active SIP investors.
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Extended Internal Rate of Return (XIRR)
Solves for the discount rate that equates the net present value of all cash flows (investments as negative, redemptions as positive) to zero.
Worked Example: Irregular investments of ₹1 Lakh, ₹50,000, and ₹50,000 over 2 years resulting in ₹2.6 Lakhs valuation
Calculated XIRR is **18.7%** annualized, accounting for the exact dates when the transactions occurred.
Statutory & Regulatory Framework (FY 2026-27)
Calibrated by Myat Finance Statutory Research Desk
SEBI & CBDT Statutory Framework (FY 2026-27)
Under Section 112A of the Income Tax Act, Long-Term Capital Gains (LTCG) on equity mutual funds held beyond 12 months exceeding ₹1,25,000 in a financial year are taxed at 12.5% plus applicable 4% Health and Education Cess. Short-Term Capital Gains (STCG) on units redeemed within 12 months are subject to 20% tax under Section 111A. Debt mutual fund schemes purchased on or after April 1, 2023, are classified under Section 50AA and taxed strictly at individual income slab rates without indexation benefits.
Compounding Drag & Structural Cost Metrics
Every mutual fund investment incurs an ongoing Total Expense Ratio (TER), capped by SEBI between 0.10% and 2.25% depending on AUM scale. Regular plans include broker distribution commissions (typically 0.5%–1.2% annually), which compound into substantial long-term wealth erosion. Exit loads (typically 1% for redemptions within 365 days) and mandatory 0.005% stamp duty on unit purchases represent additional frictional costs factored into this engine.
Institutional Methodology Note (XIRR / IRR Calculator)
Quantitative models project asset growth using monthly compounding: FV = P × [((1 + r)^n - 1) / r] × (1 + r). Realized wealth must always be measured net of capital gains tax liabilities and inflation erosion.
Computational Mechanics & Analytical Calibration
The XIRR / IRR Calculator employs deterministic client-side algorithms calibrated against current market conditions and statutory benchmarks under the FY 2026-27 regulatory framework. When executing financial simulations, institutional analysts stress-test capital allocation against three core vectors: interest rate sensitivity, taxation realization horizons (Section 112A/111A/50AA), and compounding transaction friction.
To achieve optimal mathematical precision from this model, input parameters should reflect conservative median estimates rather than optimistic projections. Comparing multi-year intervals reveals non-linear inflection points where compound growth overcomes upfront friction (such as 18% GST on financial charges, depository fees, and brokerage). Full computational amortization matrices can be exported to CSV or saved as executive PDF dossiers for portfolio auditing.
In accordance with sovereign financial publishing standards and institutional governance, all computational formulas undergo quarterly desk audits to verify alignment with Central Board of Direct Taxes (CBDT) notifications, Reserve Bank of India (RBI) master directions, and SEBI circulars for FY 2026-27. All inputs, balances, and calculations run strictly in-browser under client-side confidentiality with zero third-party telemetry.
XIRR: The Only Metric That Tells the Truth About Your SIP Returns
Siddharth invested ₹5,000/month via SIP for 3 years. His total investment was ₹1.8 Lakhs, and his portfolio value was ₹2.15 Lakhs. When he ran a simple CAGR calculation, it showed 6.1%. He was disappointed. But when he calculated his XIRR, the actual return was 11.8%.
Why the discrepancy? Simple CAGR assumes your entire ₹1.8 Lakhs was invested on Day 1. In reality, Siddharth invested in ₹5,000 tranches. The first tranche compounded for 36 months, while the last tranche compounded for only 1 month. CAGR under-represents the efficiency of his cash flows.
XIRR (Extended Internal Rate of Return) solves this by assigning a specific time weight to every transaction date. It is the gold standard for measuring mutual fund SIP returns because it accounts for irregular additions, redemptions, and dividend payouts.
Don't rely on simple CAGR to evaluate your SIPs or portfolios with multiple transactions. Use XIRR to find the true annualized growth rate of your capital. Most mutual fund platforms display XIRR as 'annualized return' , now you know why.
Frequently Asked Questions
What is XIRR in mutual funds?
XIRR stands for Extended Internal Rate of Return. It is a mathematical method used to calculate the annualized return of a series of cash flows (investments and redemptions) occurring at irregular intervals.
Why is XIRR better than CAGR for SIPs?
CAGR assumes you invested the entire amount at the very beginning. An SIP consists of multiple installments on different dates. XIRR calculates the exact time-weighted return for each installment, making it the only accurate metric for SIP performance.
How do I enter cash flows in the XIRR calculator?
Enter all cash outflows (purchases, SIP installments) as negative numbers (e.g. -10,000) and all cash inflows (redemptions, dividends, current portfolio value) as positive numbers.
Fact-Checked & Mathematically Audited
Verified by Myat Finance Research Desk
The formulas powering this XIRR / IRR Calculator are calibrated against standard Indian regulatory frameworks (RBI compounding guidelines, SEBI regulations, and CBDT tax provisions). All mathematical computations run purely in your local browser for 100% data privacy.