XIRR Calculator
Calculate Extended Internal Rate of Return for irregular mutual fund investments.
Cash Flows (- = investment, + = redemption)
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About XIRR
XIRR calculates annualized returns for irregular cash flows at different dates.
How to Enter Data
- Negative (-): Investments (money out)
- Positive (+): Redemptions/current value (money in)
What is XIRR?
XIRR stands for Extended Internal Rate of Return. It is the correct way to measure the annualized return of any investment that has multiple cashflows happening on different dates — like a monthly SIP, a series of lumpsum top-ups, or a portfolio with partial redemptions.
Unlike CAGR, which works only when you invest once and redeem once, XIRR can handle any pattern of buys and sells. It answers the question: “What single annualized rate of return makes the present value of all my cashflows equal zero?” That rate is your portfolio's real performance.
How it's calculated
XIRR is the rate `r` that satisfies: Σ [ CF_i / (1 + r)^(d_i / 365) ] = 0 for i = 1 to N There is no closed-form solution — the value is found by iterative numerical methods (Newton-Raphson or bisection).
- CF_i — Cashflow on date i (negative for investment, positive for redemption/value)
- d_i — Number of days from the first cashflow date to date i
- r — Annualized rate of return (the value being solved for)
- N — Total number of cashflows
Worked example — SIP of ₹10,000 for 12 months
- You invest ₹10,000 on the 1st of every month from Jan 1, 2025 to Dec 1, 2025 (12 SIPs).
- Each of the 12 monthly investments is a NEGATIVE cashflow of ₹10,000 on its respective date.
- On Jan 1, 2026, your portfolio is worth ₹1,32,000 — that is a POSITIVE cashflow of ₹1,32,000.
- Total invested: ₹1,20,000. Absolute return: 10%. But the money was deployed gradually, so the true annualized return is higher.
- Plug the 13 cashflows into XIRR — the iteration converges to roughly 18.5% annualized.
Result: 18.5% XIRR — substantially higher than the 10% absolute return because earlier SIPs had nearly a year to compound while later ones had only a few weeks.
XIRR vs other return measures
| Metric | When to use | Handles irregular flows? |
|---|---|---|
| Absolute return | Single buy, single sell | No |
| CAGR | Single buy, single sell, multi-year | No |
| XIRR | SIPs, top-ups, partial redemptions, any portfolio | Yes |
| IRR | Periodic cashflows at equal intervals | Equal intervals only |
| Time-weighted return | Comparing fund managers (excludes flow timing) | Yes (but different question) |
Tips and best practices
- Always enter SIPs as negative numbers — getting the signs wrong gives nonsensical answers.
- Include the current portfolio value as the LAST positive cashflow on today's date if you have not redeemed yet.
- For a 12-year SIP, you should have ~144 monthly cashflows + 1 final value = 145 entries. The XIRR is reliable only with this complete history.
- XIRR is insensitive to small date errors but sensitive to wrong amounts. Double-check the figures.
- Compare XIRR across funds in the SAME category (large-cap vs large-cap, debt vs debt). Comparing equity XIRR with debt XIRR is meaningless.
- For SIPs less than 3 years old, XIRR can be volatile. Don't make switching decisions based on short-term XIRR.
Frequently asked questions
What is XIRR and why is it different from CAGR?
XIRR (Extended Internal Rate of Return) is the annualized return on a series of cashflows that happen on different, irregular dates. CAGR assumes a single investment and a single redemption, so it cannot handle SIPs or top-ups. For any portfolio with multiple buys and sells, XIRR is the correct measure of return.
How do I enter cashflows for a SIP?
Each monthly SIP installment is a separate cashflow on the date you invested, entered as a NEGATIVE amount (money going out). The current value (or final redemption value) is entered as a POSITIVE amount on its date. You need at least one negative and one positive flow.
What is a good XIRR for an Indian mutual fund?
Long-term equity mutual funds in India have historically delivered 12–14% XIRR over 10+ years. Anything above 15% is excellent; 12–15% is good; 8–12% is average; below 8% is below par. Hybrid and debt funds typically run 7–9% XIRR.
Can XIRR be negative?
Yes. If your current value is less than your total investments and the loss is large enough, XIRR will be negative. A negative XIRR means your portfolio is losing money on an annualized basis.
Why does XIRR sometimes show a strange value?
XIRR uses iterative numerical methods (Newton-Raphson) and can converge to a non-real or extreme value when cashflows are very lopsided, all the same sign, or contain dates very close together. Always include both at least one investment (negative) and one withdrawal/value (positive).
Should I use XIRR or absolute return to evaluate a fund?
XIRR for any holding period that includes multiple cashflows (SIPs, top-ups, switches). Absolute return is fine only for a single lumpsum bought once and held to a single date. For a typical investor with a SIP running 3+ years, only XIRR gives a meaningful answer.
How is XIRR calculated in Excel?
Excel has a built-in =XIRR(values, dates, [guess]) function. The values column has cashflows (negative for outflows, positive for inflows) and the dates column has the corresponding dates. Result is the annualized rate as a decimal — multiply by 100 for the percentage.
Does XIRR account for taxes and exit loads?
No — XIRR is a pre-tax, pre-charge return measure based purely on cashflows. To get post-tax XIRR, use NET amounts (after STT, exit load, capital gains tax) for each cashflow. The MONEX MINT calculator uses whatever amounts you input.
Related calculators
XIRR is a pre-tax, pre-cost annualized return. Apply your tax bracket and exit load separately to get post-tax returns.