A SIP return cannot be measured accurately by comparing the total amount invested with today’s value alone. Each instalment stays invested for a different length of time. This XIRR Calculator estimates your annualised return using the dates and amounts of your investments, withdrawals and current value.
Enter investments as negative amounts and money received as positive amounts. Include your current portfolio value as a positive cash flow on its valuation date.
This is an estimate based on the cash flows and dates you enter. It is not a prediction of future returns or investment advice. XIRR may have no unique solution when cash flows change sign multiple times.
What Is XIRR?
XIRR stands for Extended Internal Rate of Return. It estimates the annualised rate of return for cash flows that occur on different dates. It is useful for SIPs, additional investments, partial withdrawals and other transactions that do not happen at equal intervals.
Unlike an absolute return percentage, XIRR takes the timing of each cash flow into account. It can therefore provide a more meaningful view of your personal investment performance when you enter accurate transaction dates and amounts.
How This XIRR Calculator Works
In Regular SIP mode, the calculator creates monthly negative cash flows from your first SIP date and adds the current investment value as a positive cash flow on the value date. In Custom Cash Flows mode, you enter each investment and receipt yourself.
The calculator solves for an annual rate that makes the discounted value of the entered cash flows approximately equal to zero. It uses an iterative numerical method with a bracketed search fallback. Results may be unavailable when the cash flows do not produce a suitable solution.
XIRR vs CAGR vs Absolute Return
| Metric | Best used for | Accounts for transaction dates? |
|---|---|---|
| Absolute return | Simple gain or loss compared with the amount invested | No |
| CAGR | A single initial investment and a final value over a period | Accounts for start and end dates, but not multiple cash flows |
| XIRR | SIPs, top-ups, withdrawals and cash flows on different dates | Yes |
What Is a Good XIRR?
There is no single XIRR that is good for every investment. Results depend on the asset type, market conditions, investment period, transaction dates, fees and taxes. Compare your result with an appropriate benchmark and similar investment options over the same period rather than relying on a fixed return target.
A high past XIRR does not guarantee similar future performance. A short investment period can also produce unusually high or low annualised results, so review the holding period and risk alongside the percentage.
Why Can Two Investors in the Same Fund Have Different XIRR?
XIRR depends on each investor’s actual cash flow dates and amounts. Two people investing in the same mutual fund may receive different results because they started on different dates, invested different amounts, made extra contributions or withdrew money at different times.
Frequently Asked Questions
Ans. XIRR is an annualised return measure that considers the amount and date of each investment or withdrawal. It is commonly used to assess SIPs and portfolios with multiple cash flows.
Ans. CAGR is generally suitable for a single initial investment and a final value. XIRR accounts for multiple cash flows occurring on different dates, making it more suitable for SIPs, top-ups and withdrawals.
Ans. Yes. A negative XIRR indicates that the entered cash flows produce a loss on an annualised basis. Check the transaction dates and amounts, then consider market conditions and your investment period before interpreting the result.
Ans. Absolute return measures the overall gain or loss against the total amount invested without considering when each instalment was invested. XIRR accounts for the time between every cash flow, so the two figures can differ substantially.
Ans. Select Regular SIP, enter your monthly amount, first instalment date, number of instalments, current investment value and value date. The calculator creates the cash flows and estimates the annualised return.
Ans. Use Custom Cash Flows when your investment history includes irregular contributions, lump-sum top-ups, withdrawals or other receipts. Enter each transaction with its actual date and sign.
Ans. You can compare the annualised figures as one part of your review, but they are not identical measures of risk. Consider taxes, liquidity, guarantees, market risk, fees and the timing of deposits before making a decision.
Ans. A solution may not exist for the entered cash flows, dates may be invalid, or cash flows that change sign multiple times may produce more than one possible rate. Check the data and compare complex cases with a trusted spreadsheet function.
Tabassum is a government document researcher and writer with over 5 years of experience exclusively dedicated to tracking and simplifying Central and State Government document processes across India. She has researched and published detailed guides on 100+ government documents and certificates – including Aadhaar Card, PAN Card, Ration Card, Domicile Certificate, and Birth Certificate – covering all states and the Central Government, helping lakhs of Indian citizens successfully complete their paperwork in simple, easy-to-understand language.