XIRR Calculator – Extended Internal Rate of Return Calculator
XIRR (Extended Internal Rate of Return) is used to calculate returns on investments with irregular cash flows — such as SIPs with varying amounts, additional purchases, or partial redemptions. It gives you a single annualized return figure that accounts for the timing and size of every cash flow.
Negative = investment, Positive = redemption
Extended Internal Rate of Return
10.67%
3 cash flows entered
What Your Results Mean
The XIRR percentage represents the annualized return across all your cash flows, accounting for exact dates. Unlike CAGR, it handles multiple investments and withdrawals. A higher XIRR means your money worked more efficiently considering when each amount was deployed.
What This Calculator Does
Enter multiple cash flows with their dates (investments as negative amounts, redemptions as positive). The calculator computes the XIRR — the annualized rate of return that makes the net present value of all cash flows equal to zero.
How the Calculation Works
XIRR uses an iterative numerical method to find the discount rate that sets the NPV of all dated cash flows to zero. It's more accurate than CAGR when dealing with multiple investments made at different times.
Calculation Logic (Simplified)
XIRR solves: Σ [CFi / (1 + r)^((di - d0)/365)] = 0, where CFi = cash flow at date di, d0 = earliest date, r = XIRR.Example Calculation
If you invested ₹1,00,000 on Jan 1, 2020, another ₹50,000 on Jul 1, 2020, and received ₹2,00,000 on Jan 1, 2023, the XIRR would be approximately 17.5%.
When to Use This Calculator
- You have SIP investments and want to know your actual annualized return
- You've made multiple purchases of a stock or fund at different times
- You've done partial redemptions and want to calculate true portfolio return
- You need to compare performance of portfolios with different investment patterns
Common Mistakes to Avoid
- Using CAGR instead of XIRR for SIP or multi-transaction investments — CAGR ignores intermediate cash flows
- Forgetting to include the final redemption value as a positive cash flow
- Entering investment amounts as positive instead of negative — investments should be negative, redemptions positive
- Expecting XIRR to be meaningful for very short periods (under 6 months)
Benefits & Use Cases
- Accurate return calculation for SIPs and irregular investments
- Accounts for exact timing of every cash flow
- Best way to measure actual portfolio returns
- Compare investment performance fairly
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Assumptions and Limitations
Assumptions
- All cash flows are accurately dated — even small errors in dates can change the result
- The final cash flow represents the current or redemption value of the investment
- Cash flows occur on the exact dates specified — no rounding to month or quarter
Limitations
- XIRR may not converge for unusual cash flow patterns — the iterative method can fail in rare cases
- Very short investment periods can produce misleadingly high or low XIRR values
- It assumes a single rate of return across the entire period — it doesn't show how returns varied over time
- Dividend reinvestments need to be explicitly entered as separate cash flows for accuracy
Frequently Asked Questions
What to Do Next
Now that you have your results, explore related tools to refine your financial plan. Try comparing different scenarios or use our other calculators for a more complete picture.
Disclaimer: These calculations are for educational and planning purposes only. Actual investment returns vary based on market conditions, product choice, fees, taxes, and individual circumstances. This tool does not constitute financial advice. Consider consulting a qualified financial advisor for decisions specific to your situation.