XIRR Calculator (Extended Internal Rate of Return)
Calculate the true annualized returns (XIRR) of your mutual fund SIPs, lump sums, and irregular investments.
Transaction Ledger
| Date | Type | Amount | Action |
|---|---|---|---|
| 2024-01-01 | Investment | -₹10,000 | |
| 2024-02-01 | Investment | -₹10,000 | |
| 2024-03-01 | Investment | -₹10,000 | |
| 2024-04-01 | Investment | -₹10,000 | |
| 2024-05-01 | Investment | -₹10,000 | |
| 2024-06-01 | Return | +₹53,500 |
Maturity & Returns Summary
Ledger Amortization Schedule
| Transaction | Date | Type | Raw Amount | Signed Amount |
|---|---|---|---|---|
| # 1 | 2024-01-01 | Investment | ₹10,000 | -₹10,000 |
| # 2 | 2024-02-01 | Investment | ₹10,000 | -₹10,000 |
| # 3 | 2024-03-01 | Investment | ₹10,000 | -₹10,000 |
| # 4 | 2024-04-01 | Investment | ₹10,000 | -₹10,000 |
| # 5 | 2024-05-01 | Investment | ₹10,000 | -₹10,000 |
| # 6 | 2024-06-01 | Return | ₹53,500 | +₹53,500 |
Annualized Returns Analysis
Your extended internal rate of return results simplified:
Annualized Return (XIRR)
The compounded annualized return rate of your investment ledger.
Total Invested Capital
The sum of all cash outflows (investments).
Total Value Received
The sum of all cash inflows (redemptions & current values).
How is it calculated?
0 = \sum_{i=1}^{N} \frac{P_i}{(1 + r)^{\frac{d_i - d_1}{365}}}Where P_i is the cash flow amount at date d_i, d_1 is the first transaction date, and r is the annualized XIRR rate solved numerically.
Worked Examples
6-Month Mutual Fund SIP XIRR
Investing ₹10,000 monthly for 5 months, then redeeming ₹53,500 in month 6. Factoring in dates, the true annualized return (XIRR) is approximately 25.43%.
Irregular Investments and Dividends
Enter all your purchase transactions as negative numbers (outflows), and all your sales, redemptions, and dividend payouts as positive numbers (inflows). XIRR finds the single interest rate that equalizes the present value of all transactions.
Ultimate Guide to XIRR (Extended Internal Rate of Return)
What is XIRR?
XIRR, or Extended Internal Rate of Return, is a mathematical method used to calculate the annualized rate of return for a series of cash flows occurring at irregular intervals.
Unlike simple returns or CAGR (which only look at the start and end values of a single deposit), XIRR factors in the exact dates and amounts of every single transaction—whether they are investments, redemptions, dividend payouts, or current valuations.
This makes XIRR the gold standard for measuring mutual fund SIP performance, stock portfolio returns with periodic buying/selling, and any complex personal investment ledger.
How to Read Your XIRR Results
Our XIRR Calculator breaks down your investment metrics into clear, actionable values:
1. Annualized Return (XIRR): The compound annualized rate of return representing your investment performance.
2. Total Invested: The sum of all cash outflows (investments) you've made.
3. Total Received: The sum of all cash inflows (redemptions, dividends, or the current market value of your holding).
4. Net Gain & Absolute Gain: The absolute profit amount and the simple percentage return on your principal capital.
The Mathematics of XIRR Solver
XIRR solves for the discount rate 'r' that satisfies the Net Present Value (NPV) equation of all cash flows:
NPV = Sum of [ P_i / (1 + r)^( (d_i - d_1) / 365 ) ] = 0
Since this equation cannot be solved algebraically, the calculator uses the Newton-Raphson iteration algorithm to numerically converge on the correct rate within a fraction of a millisecond.
Frequently Asked Questions
What is XIRR and how does it differ from CAGR?
Why are cash outflows entered as negative numbers?
Why does XIRR sometimes show an error or fail to calculate?
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Results are estimates and should not be considered financial advice.