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XIRR Calculator - Calculate Returns for SIP and Multiple Investments

Free XIRR calculator for mutual funds, SIPs, and investments with irregular cash flows. Calculate accurate returns considering all transactions and dates.

Pro Tip: Enter investments as negative (-) and redemptions as positive (+)

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Disclaimer

This calculator is for informational and educational purposes only. It does not constitute financial or investment advice. Consult with a qualified financial advisor before making investment decisions.

What is XIRR Calculator - Calculate Returns for SIP and Multiple Investments?

XIRR (Extended Internal Rate of Return) calculator helps you calculate the actual annualized rate of return on investments with irregular cash flows and transactions at different dates. Unlike CAGR which works only for lumpsum investments, XIRR is the most accurate method for calculating returns on SIPs, mutual funds, and any investments with multiple deposits, withdrawals, or transactions over time. It accounts for the exact timing and amount of each cash flow, giving you true performance metrics.

How to Use This Calculator

  1. Enter each investment as a negative value with its exact date
  2. Enter redemptions or current value as positive values with dates
  3. Add more rows as needed using the + (Add) button
  4. Ensure you have at least one negative (investment) and one positive (redemption) flow
  5. Click Calculate to see your XIRR percentage
  6. XIRR will show your actual annualized return considering all cash flows
  7. Compare XIRR across different investments for accurate performance analysis

Formula Used

XIRR Calculation Method: XIRR is calculated by finding the rate 'r' that satisfies: Σ [Cash Flow_i / (1 + r)^((Date_i - Date_0) / 365)] = 0 Where: - Cash Flow_i = Amount at transaction i (negative for investments, positive for redemptions) - Date_i = Date of transaction i - Date_0 = Date of first transaction - r = XIRR (the rate we're solving for) - The formula uses iterative methods (Newton-Raphson) to find 'r' Key Principles: 1. Investments (money going out) = Negative values 2. Redemptions (money coming in) = Positive values 3. Current value (if not redeemed) = Positive value on today's date 4. Each cash flow is time-weighted based on its date 5. XIRR gives annualized return percentage Example Flow Structure: Date | Amount | Type 01-Jan-2023 | -₹10,000 | Investment (SIP 1) 01-Feb-2023 | -₹10,000 | Investment (SIP 2) 01-Mar-2023 | -₹10,000 | Investment (SIP 3) 01-Jan-2024 | +₹35,000 | Current Value / Redemption

Example Calculation

Example 1: SIP Investment XIRR Monthly SIP of ₹5,000 for 12 months: Date | Cash Flow | Type 01-Jan-2023 | -₹5,000 | SIP Month 1 01-Feb-2023 | -₹5,000 | SIP Month 2 01-Mar-2023 | -₹5,000 | SIP Month 3 01-Apr-2023 | -₹5,000 | SIP Month 4 01-May-2023 | -₹5,000 | SIP Month 5 01-Jun-2023 | -₹5,000 | SIP Month 6 01-Jul-2023 | -₹5,000 | SIP Month 7 01-Aug-2023 | -₹5,000 | SIP Month 8 01-Sep-2023 | -₹5,000 | SIP Month 9 01-Oct-2023 | -₹5,000 | SIP Month 10 01-Nov-2023 | -₹5,000 | SIP Month 11 01-Dec-2023 | -₹5,000 | SIP Month 12 01-Jan-2024 | +₹68,500 | Current Value Total Invested: ₹60,000 Current Value: ₹68,500 Absolute Gain: ₹8,500 (14.17%) XIRR: ~15.8% per annum Example 2: Irregular Investments Date | Cash Flow 15-Jan-2023 | -₹50,000 (Initial investment) 10-May-2023 | -₹25,000 (Additional investment) 20-Aug-2023 | +₹10,000 (Partial withdrawal) 15-Dec-2023 | +₹75,000 (Current value) Total Invested: ₹75,000 Total Withdrawn: ₹10,000 Current Value: ₹75,000 XIRR: ~18.5% per annum The XIRR accurately reflects returns considering irregular timing. Example 3: XIRR vs CAGR Comparison Lumpsum Investment: ₹1,00,000 invested on 01-Jan-2020 Value on 01-Jan-2024: ₹1,60,000 CAGR = 12.47% XIRR = 12.47% (Same as CAGR for lumpsum) SIP Investment: ₹10,000 monthly for 12 months (Total: ₹1,20,000) Value after 12 months: ₹1,35,000 CAGR cannot be calculated accurately XIRR = 16.2% (Correct annualized return)

Frequently Asked Questions

What is the difference between XIRR and CAGR?

CAGR works only for lumpsum investments (single investment, single redemption). XIRR works for multiple cash flows at different dates - perfect for SIPs. For a lumpsum investment, XIRR and CAGR will be identical. For SIPs or multiple transactions, only XIRR gives accurate returns. Always use XIRR for mutual fund SIPs.

Why should investments be negative and redemptions positive?

This follows standard cash flow convention: Money leaving your pocket (investments) is negative, money coming to you (redemptions/current value) is positive. This is how IRR/XIRR calculations work in finance. Think of it from your perspective - when you invest, you're giving away money (-), when you redeem, you're receiving money (+).

Can XIRR be negative?

Yes, if your current value is less than total investments, XIRR will be negative, indicating your investment is making a loss at that annualized rate. For example, if you invested ₹1,00,000 through SIP and current value is ₹90,000, XIRR will be negative, showing the annual rate at which your investment declined.

What is a good XIRR for mutual fund SIPs?

For equity mutual funds, XIRR of 12-15% is good, 15-18% is excellent, and 18%+ is outstanding over 5+ years. Debt funds typically give 6-8% XIRR. Compare your XIRR with the fund's benchmark index. Remember, longer time periods generally give more reliable XIRR values.

How many transactions do I need to calculate XIRR?

Minimum two transactions: at least one investment (negative) and one redemption/current value (positive). For SIPs, include all monthly investments individually with their dates, and current value as the final positive entry. More data points give more accurate XIRR.

Should I use XIRR to calculate SIP returns?

Absolutely yes! XIRR is the ONLY accurate method for SIP returns. Using simple percentage or CAGR for SIPs gives misleading results because they don't account for timing of cash flows. All mutual fund houses report SIP returns using XIRR. It's the industry standard for multiple cash flow investments.

How does XIRR handle partial withdrawals?

Enter partial withdrawals as positive cash flows on their withdrawal dates. XIRR automatically adjusts for these outflows. For example: -₹10,000 monthly SIP for 24 months, +₹50,000 withdrawal at month 12, +₹2,00,000 current value at month 24. XIRR calculates correct returns considering all cash flows.

Why is my XIRR very high or low sometimes?

Very high XIRR (>50%) usually means: short time period with good gains, or data entry error. Very low/negative XIRR means: poor fund performance, or recent investments haven't had time to grow. For reliable XIRR, have investment period of at least 1-2 years. Short periods can show exaggerated returns.

Can I compare XIRR across different mutual funds?

Yes! XIRR is perfect for comparing funds with different investment patterns. If Fund A shows 14% XIRR and Fund B shows 16% XIRR over same period, Fund B performed better regardless of investment amounts or frequency. This makes XIRR the best tool for portfolio comparison and fund selection.

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