XIRR Calculator
The annualised return on investments made at different times, for SIPs, mutual funds and share portfolios, with the same cash flows replayed in an index.
XIRR is the annualised return on a series of investments and withdrawals made on different dates, the right measure for a SIP or any portfolio you added to over time. Enter each cash flow with its date and today's value; the calculator returns the XIRR and replays the same cash flows in the Nifty 50 or Sensex for comparison.
When money goes in at different times, a simple return misleads: a rupee invested last month has had far less time to grow than one invested five years ago. XIRR (extended internal rate of return) weights every cash flow by how long it was invested and gives a single yearly rate, which is why mutual fund statements report it for SIPs.
Use the SIP helper to fill a monthly series, or type each investment, withdrawal and the current value with its date. Below the result, the same rupee amounts on the same dates are run through the index of your choice, so you can see whether the fund or portfolio beat simply holding the index.
How XIRR is calculated
XIRR is the rate r that makes the present value of every cash flow sum to zero: Σ CFi / (1 + r)(di − d0) / 365 = 0, with investments negative and withdrawals and the current value positive. There is no closed-form answer, so it is solved numerically; the calculator uses Newton's method with a bisection fallback, the same approach as a spreadsheet's XIRR function.
In Excel or Google Sheets, put the amounts in one column (investments as negative numbers, the current value as a positive one on today's date) and the dates in the next, then use =XIRR(amounts, dates).
XIRR, CAGR and absolute return
Absolute return is total gain divided by total invested, with no regard to time. CAGR is the yearly rate for a single lump sum held from one date to another. XIRR generalises CAGR to many cash flows: for a single investment and a single redemption the two are identical.
A SIP's absolute return understates its performance, because the later instalments were invested for only a short time. A short holding period works the other way: a 3% gain in two months annualises to roughly 19%, so XIRR over less than a year says little. The CAGR calculator handles the lump-sum case.
Key takeaways
- XIRR is the annualised return when money goes in and out on different dates.
- Investments are outflows (negative), withdrawals and today's value are inflows (positive).
- For one investment and one redemption, XIRR equals CAGR.
- Over periods under a year, XIRR annualises a short-run result and can look extreme.
Frequently asked questions
What is XIRR in mutual funds?
XIRR is the annualised return on a series of investments made on different dates, such as SIP instalments, plus any redemptions and the current value. Mutual fund statements quote it because a simple return ignores how long each instalment has been invested.
How do I calculate XIRR for a SIP?
List every instalment with its date as a negative amount and today's value as a positive amount on today's date, then solve for the rate that makes their present values sum to zero. The calculator above does this; in a spreadsheet, =XIRR(amounts, dates) gives the same answer.
What is the difference between XIRR and CAGR?
CAGR measures a single lump sum between two dates. XIRR handles any number of cash flows on any dates. With one investment and one redemption they give the same number.
Why is my XIRR so high or so negative?
XIRR is a yearly rate. Over a few weeks or months a small gain or loss annualises into a large number, so XIRR over less than a year is not a meaningful guide.
How does my XIRR compare with the Nifty 50?
The calculator replays your exact cash flows in the Nifty 50, Sensex, Nifty Next 50, Nifty 500 or Bank Nifty using month-end closes. It uses the price index, which leaves out dividends, so the index side is slightly understated.