XIRR Calculator – Measure Your Real Investment Returns
Calculate the real annualized returns of your investments with multiple cash flows using our XIRR calculator. Perfect for SIPs, mutual funds, and irregular investments.
XIRR Frequency Split Up
What is XIRR?
The XIRR (Extended Internal Rate of Return) calculator calculates the annualized returns of investments with multiple cash flows at irregular intervals. Unlike CAGR, XIRR accounts for the exact timing of each investment and withdrawal.
Handles multiple cash flows at different times
Considers exact investment dates and amounts
Calculates true annualized performance
Ideal for SIPs and irregular investments
How is XIRR Calculated?
Pi = Cash flow amount
N = Number of transactions
D1 = Initial date of investment
Di = Date of each transaction
R = XIRR (to be calculated)
Example Calculation
Let’s assume you invest ₹10,000 in a debt instrument with fixed monthly payouts at 12% annual return:
| Date | Cashflow | Type |
|---|---|---|
| 02-12-2024 | ₹ -10,000.00 | Initial Investment |
| 02-01-2025 | ₹ 100.00 | Monthly payout |
| 02-02-2025 | ₹ 100.00 | Monthly payout |
| 02-03-2025 | ₹ 100.00 | Monthly payout |
| 02-04-2025 | ₹ 100.00 | Monthly payout |
| 02-05-2025 | ₹ 100.00 | Monthly payout |
| 02-12-2025 | ₹ 10,000.00 | Withdrawal |
For these cash flows, the XIRR is 12.65% per annum.
What is a Good XIRR?
A good XIRR depends on the type of investment and market conditions:
- Equity Instruments: 10-14% is considered good
- Debt Instruments: 6-10% is considered good
- Balanced Funds: 8-12% is considered good
Note: A good XIRR depends on consistent returns, investment duration, and market volatility.
XIRR vs CAGR Comparison
Understand the key differences between XIRR and CAGR:
XIRR (Extended IRR)
- For multiple cash flows
- Accounts for exact dates
- Ideal for SIPs
- More accurate for real scenarios
- Handles irregular investments
CAGR (Compound Annual Growth)
- For single investment
- Same time intervals
- Ideal for lump sums
- Simplified calculation
- Assumes smooth growth
Choose XIRR when you have multiple investments at different times (like SIPs). Choose CAGR for single lump-sum investments.