XIRR / IRR Calculator
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.
What to do next
Based on your XIRR / IRR Calculator, here are the tools you should try next:
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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
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.
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