📊 XIRR Calculator

What is XIRR?

XIRR (Extended Internal Rate of Return) calculates the annualized rate of return when cash flows occur at irregular intervals. Unlike simple returns, XIRR accounts for the timing of each transaction, making it perfect for SIPs, lumpsums, partial redemptions, and any irregular investment pattern. It's the most accurate method to measure your investment performance.

How to Use This Calculator:

1. Enter each investment as negative amount (money going out: -₹10,000)
2. Enter any redemptions as positive amount (money coming in: +₹5,000)
3. Add the exact date for each transaction (critical for accuracy)
4. Click "+ Add More Cash Flow" to add multiple transactions
5. Enter the current value of remaining investment (treated as final inflow)
6. Click "Calculate XIRR" to see your annualized return percentage
7. View total invested, current value, and absolute gains

XIRR Formula & Calculation:

XIRR uses the Newton-Raphson method to find the rate (r) that makes the Net Present Value (NPV) equal to zero:
Σ [Cash Flow_i / (1 + r)^(days_i / 365)] = 0
Where: Cash Flow_i = each transaction amount, days_i = days from first transaction, r = XIRR rate

When to Use XIRR:

• SIP Investments: Monthly investments at different dates—XIRR accounts for each SIP timing
• Lumpsum + SIP: Initial lumpsum followed by regular SIPs—measures combined performance
• Irregular Investments: Random amounts at random dates (bonuses, windfalls invested)
• Partial Redemptions: Withdrawals during investment tenure—captures impact on returns
• Dividend Reinvestment: Dividends received and reinvested at different times
• Real Portfolio Performance: Actual returns considering your specific investment pattern

XIRR vs Other Return Measures:

• XIRR: Irregular cash flows, time-weighted, most accurate—use for all real investments
• CAGR: Only for single lumpsum investment—cannot handle multiple transactions
• Absolute Return: (Final - Initial) ÷ Initial × 100—ignores time value of money
• Point-to-Point: NAV change over period—doesn't account for your cash flow timing
• TWR (Time-Weighted Return): Fund manager performance, removes impact of your timing

Practical XIRR Examples:

• Monthly SIP ₹10K for 3 years: ₹3.6L invested, ₹4.5L current = ~15% XIRR (good equity fund)
• Irregular Investments: ₹1L Jan, ₹2L Jun, ₹50K Dec, current ₹4L after 2 years = ~18% XIRR
• Lumpsum + SIP: ₹5L lumpsum + ₹5K monthly × 24 months, current ₹7.5L = ~12% XIRR
• With Partial Redemption: Invested ₹5L, withdrew ₹2L after 1 year, current ₹4L after 3 years = ~10% XIRR
• Negative XIRR: Poor fund/market timing—losses eating into investments

XIRR Analysis & Benchmarking:

• Equity Funds: Target 12-15% XIRR over 5+ years, 15%+ is excellent
• Debt Funds: Target 7-9% XIRR, 9%+ is good performance
• Hybrid/Balanced: Target 10-12% XIRR, blend of equity and debt
• Compare to Index: Nifty 50 XIRR ~11-13% over 10 years—beat this benchmark
• Compare to FD: FD gives 6-7%—equity XIRR should be 5%+ higher
• Risk-Adjusted: Higher XIRR is good, but check volatility and drawdowns too

XIRR Strategy Tips:

• Regular Monitoring: Calculate XIRR quarterly to track actual performance vs expectations
• Don't Stop SIPs: Market downturns often show negative XIRR—but continuing builds wealth
• Exit Decision: Consistently poor XIRR (<5% in equity) over 3+ years=consider switching funds
• Realistic Expectations: 12-15% XIRR in equity is realistic long-term, not 20-25%
• Time Matters: XIRR of 8% over 15 years is better than 15% over 2 years (sustainability)
• Tax Impact: XIRR is pre-tax—actual return is lower after LTCG/STCG tax
• Dividend vs Growth: Use Growth option—dividends reduce XIRR unless reinvested immediately
• Entry/Exit Timing: Buying high and selling low shows in XIRR—avoid emotional decisions
• Multiple Funds: Calculate XIRR for each fund separately to identify winners and losers
• Rebalancing Impact: Switching funds resets XIRR—factor in exit loads and taxes