XIRR Calculator
Find the true annual return on investments made at different times — SIPs, top-ups, partial withdrawals or any irregular cash flows.
Your XIRR will appear here
Add your SIP or transaction details along with the current value, and we'll calculate your true annualised return instantly.
Cash Flow Timeline (Yearly)
| # | Date | Type | Cash Flow |
|---|
What is XIRR?
XIRR (Extended Internal Rate of Return) is the annualised return on investments where money goes in or comes out on different dates and in different amounts. It takes into account exactly how long each rupee stayed invested, and converts everything into one annual return figure.
That's why XIRR is the standard way to measure SIP returns. Your first instalment may have been invested for 5 years, while your latest one has been invested for just a month. A simple return or CAGR treats all of that money the same — XIRR doesn't.
Why Not Just Use CAGR?
CAGR works when there is one investment at the start and one value at the end. The moment you add money at different times (SIPs, top-ups) or take some out (partial withdrawals, SWPs), CAGR can't account for the timing, and the result becomes misleading.
XIRR solves this by giving every cash flow its own time weight. Money invested earlier gets more weight; money invested recently gets less.
XIRR Formula
In plain words, XIRR is the rate at which the present value of all your investments exactly equals the present value of everything you received back (including the current value). There is no direct formula to solve this — it is found by trial and error (iteration), which is exactly what Excel's XIRR function and this calculator do for you.
Example: SIP Returns
You invested ₹5,000 every month on the 1st, from January 2025 to December 2025 (12 instalments). On 1 January 2026, your portfolio is worth ₹66,000.
- Total invested = 12 × ₹5,000 = ₹60,000
- Gain = ₹66,000 − ₹60,000 = ₹6,000, so absolute return = 10%
- XIRR = 18.88% per year
Why is XIRR so much higher than 10%? Because your ₹60,000 was not invested for the full year. The January instalment was invested for 12 months, but the December one for only 1 month. On average, your money was invested for roughly half the year — and earning 10% in about half a year is equivalent to a much higher annual rate.
XIRR vs CAGR vs IRR vs Absolute Return
| Metric | What it measures | Best used for |
|---|---|---|
| Absolute Return | Total percentage gain, ignoring time | Quick check on short-term investments (under 1 year) |
| CAGR | Annual compounded growth between one start and one end value | Lumpsum investments |
| IRR | Annual return on cash flows at equal intervals | Project or business cash flows with regular periods |
| XIRR | Annual return on cash flows at any dates | SIPs, top-ups, partial withdrawals, SWPs, real portfolios |
How to Calculate XIRR in Excel
- In column A, enter the date of each transaction. In column B, enter the amount.
- Enter every investment as a negative number (money going out of your pocket), and every withdrawal as a positive number.
- In the last row, enter today's date (or the valuation date) and your current value as a positive number.
- In any empty cell, type =XIRR(B2:B14, A2:A14) and format the cell as a percentage.
| Date (A) | Amount (B) |
|---|---|
| 01-Jan-2025 | −5,000 |
| 01-Feb-2025 | −5,000 |
| … | … |
| 01-Dec-2025 | −5,000 |
| 01-Jan-2026 | 66,000 |
| =XIRR(B2:B14, A2:A14) | 18.88% |
Tip: the Excel report you download from this calculator already includes a live XIRR formula, so you can edit the numbers and see the result update.
Where is XIRR Used?
The standard way to measure returns on monthly or quarterly SIPs.
When you invest extra amounts at random times on top of your regular SIP.
Measure returns accurately even after taking partial money out.
Track your real return when you buy and sell shares on different dates.
Check the actual return on policies with yearly premiums and a maturity payout.
Account for booking amount, instalments, rental income and the final sale price.
What is a Good XIRR?
There's no single number. A good XIRR is one that comfortably beats inflation and is in line with the risk you took. Compare your fund's XIRR with its benchmark index over the same period, and with what a safer option like an FD would have earned. Also remember that SIP XIRR swings a lot in the first few years, so judge it over a longer period — ideally 5 years or more for equity.
Limitations of XIRR
- Short periods get exaggerated: XIRR is annualised, so a small gain over a few weeks or months can show up as a huge percentage. Look at absolute return for periods under a year.
- It assumes reinvestment at the same rate: Any money withdrawn is assumed to earn the XIRR rate, which may not reflect what you actually did with it.
- Multiple answers are possible: If cash flows switch between negative and positive many times, there can mathematically be more than one XIRR. This is rare for normal SIPs.
- It's pre-tax: XIRR doesn't account for capital gains tax or other charges outside the fund. Your post-tax return will be lower.
- It depends on the valuation date: XIRR on a day the market is down will look worse than on a day it's up. It's a snapshot, not a guarantee.
Pro tip: Mutual fund statements (CAS) and most investment apps show your portfolio XIRR. If you hold the same fund across multiple folios or platforms, list all transactions together in the "Custom Cash Flows" tab to get your true combined return.
Frequently Asked Questions
What is the difference between XIRR and CAGR?
CAGR measures growth between one starting value and one ending value, so it's ideal for lumpsum investments. XIRR handles multiple investments and withdrawals made on different dates, so it's the right measure for SIPs and real portfolios. For a single lumpsum investment, XIRR and CAGR give the same answer.
Why is my SIP XIRR higher than my absolute return?
Because not all your money was invested for the full period. Later instalments were invested for a shorter time, so the same rupee gain represents a higher annual rate. Over very long periods, the opposite can also happen.
Can XIRR be negative?
Yes. If the current value plus withdrawals is less than what you invested, XIRR will be negative, meaning you have lost money on an annualised basis.
Should I enter investments as negative numbers in this calculator?
No. Just choose "Investment" or "Withdrawal" as the type and enter the amount as a positive number. The calculator applies the correct signs automatically. In Excel, though, you must enter investments as negative values.
What should I enter if I have fully redeemed my investment?
Enter the redemption as a "Withdrawal" on the date you received the money, then enter 0 as the current value with the same date as the valuation date.
Why does XIRR look very high for a short period?
XIRR is always annualised. A 5% gain in one month works out to roughly 80% a year when annualised. For holdings under a year, absolute return gives a more realistic picture.
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Talk to an ExpertDisclaimer: This calculator is for educational and illustrative purposes only. Results are pre-tax and do not guarantee future returns. Please consult a qualified advisor before making investment decisions.