XIRR Calculator
Calculate Extended Internal Rate of Return for irregular cash flows
Cash Flows
Note: Enter investment amounts as positive values - they will be treated as negative (outflow) automatically. Withdrawals/redemptions are positive values (inflow).
About XIRR
XIRR (Extended Internal Rate of Return): Calculates the annualized return for investments with irregular cash flows at different dates.
Unlike CAGR, XIRR accounts for the exact dates of each cash flow, making it ideal for SIP investments, lump sum investments, and withdrawals at different times.
Results
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Est. Results
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How XIRR (Extended Internal Rate of Return) is Calculated?
XIRR (Extended Internal Rate of Return) is a powerful financial metric that calculates the annualized return on investments with irregular cash flows at different dates. Unlike CAGR, XIRR accounts for the exact dates of each investment and withdrawal, making it ideal for SIPs, lump sum investments, and complex investment scenarios.
XIRR Calculation Process
XIRR Formula: Uses iterative calculation to find the rate where NPV = 0
NPV = Σ (Cash Flow / (1 + XIRR)^((Date - First Date) / 365)) = 0
Net Return: Current Value - Total Invested
Where:
- Cash Flows = All investments (negative) and withdrawals (positive) with their dates
- XIRR = Annualized return rate that makes Net Present Value (NPV) equal to zero
- Net Return = Total gain or loss from the investment
- Total Invested = Sum of all investment amounts
Example:
Let's calculate XIRR for a SIP investment: ₹5,000 monthly for 12 months (starting Jan 1) with a current value of ₹65,000 (on Dec 31).
Given: Monthly SIP = ₹5,000, Months = 12, Current Value = ₹65,000
Step 1: Calculate Total Invested
Total Invested = ₹5,000 × 12 = ₹60,000
Step 2: Calculate Net Return
Net Return = ₹65,000 - ₹60,000 = ₹5,000
Step 3: Calculate XIRR
XIRR uses iterative calculation considering:
- 12 investments of -₹5,000 on different dates
- Final value of +₹65,000 on Dec 31
XIRR ≈ 12-15% (depending on exact dates and market performance)
Result: Your XIRR is approximately 12-15%, meaning your SIP investment generated an annualized return of 12-15% considering the timing of each investment.
Use Cases for XIRR Calculator
SIP Performance
Calculate accurate returns for Systematic Investment Plans
Irregular Investments
Evaluate returns for investments made at different dates
Portfolio Analysis
Analyze overall portfolio returns with multiple cash flows
Investment Planning
Plan future investments based on historical XIRR
Benefits of Using Our XIRR Calculator
Calculate returns for irregular cash flows
Account for exact dates of investments and withdrawals
Get accurate annualized returns for SIPs
Compare performance across different investment strategies
100% free, no registration required
Mobile-friendly design
XIRR Calculator FAQs
❓What is XIRR?
XIRR (Extended Internal Rate of Return) is a method to calculate the annualized return on investments with irregular cash flows at different dates. Unlike CAGR, XIRR accounts for the exact dates of each cash flow, making it ideal for SIP investments, lump sum investments, and withdrawals.
❓What's the difference between XIRR and CAGR?
CAGR assumes a single investment and single withdrawal at fixed intervals. XIRR handles multiple investments and withdrawals at different dates, making it more accurate for real-world investment scenarios with irregular cash flows.
❓When should I use XIRR?
Use XIRR for SIP investments, mutual funds with multiple transactions, portfolio analysis with irregular deposits/withdrawals, and any investment where cash flows occur at different dates. It provides the most accurate return calculation for such scenarios.
❓How is XIRR calculated?
XIRR uses an iterative method to find the discount rate that makes the net present value (NPV) of all cash flows equal to zero. It considers both the amounts and exact dates of each cash flow, providing an annualized return rate.
❓Is this XIRR calculator accurate?
Yes, this calculator uses the standard XIRR formula used in Excel and financial analysis. It provides accurate annualized returns for investments with irregular cash flows.