XIRR Calculator India

XIRR (Extended Internal Rate of Return) is the most accurate way to measure the returns on a Systematic Investment Plan (SIP) or any investment where money goes in and comes out at irregular intervals. Unlike simple returns or CAGR (which work only for lump-sum investments), XIRR considers the actual date of each cash flow.

How to Use This XIRR Calculator

1. Enter each SIP installment as a negative amount (e.g., -10,000) with its actual investment date
2. Add the current portfolio value as a positive amount with today's date
3. If you've redeemed units, enter those as positive amounts with their actual dates
4. Click Calculate XIRR to get your annualized return rate
5. You can also paste data directly from Excel — just copy two columns (Date, Amount)

XIRR Formula

XIRR solves for the rate r in the equation:
Σ [Cᵢ / (1 + r)^(tᵢ/365)] = 0
Where Cᵢ is each cash flow and tᵢ is the number of days from the first cash flow. This is solved iteratively using the Newton-Raphson method.

Example: Calculating XIRR for a Mutual Fund SIP

Suppose you invested ₹10,000 per month in a mutual fund for 3 years (36 installments = ₹3,60,000 total). After 3 years, your portfolio value is ₹4,85,000. The XIRR for this scenario would be approximately 18.5% — much higher than the simple return of 34.7% might suggest, because XIRR annualizes the return properly.

XIRR vs CAGR vs Absolute Returns

Use CAGR for lump-sum investments. Use XIRR for SIPs and multiple cash flows. Absolute return (total % gain) doesn't consider time. For most mutual fund investors, XIRR is the correct metric to use.