Calculate the Extended Internal Rate of Return (XIRR) for your investments with irregular cash flows. Perfect for SIPs, mutual funds, stocks, and any investment with multiple transactions at different dates.
| # | Date | Type | Amount | Days from Start |
|---|
XIRR (Extended Internal Rate of Return) is a financial function that calculates the annualized return on investments when cash flows occur at irregular intervals. Unlike simple returns or CAGR, XIRR accounts for:
XIRR solves for rate (r) in: Σ [Cash Flow / (1 + r)^((date - start_date) / 365)] = 0
| Metric | Best For | Limitations |
|---|---|---|
| XIRR | SIPs, irregular investments, multiple cash flows | Complex calculation, may not converge for extreme values |
| CAGR | Lump sum investments held for long periods | Ignores intermediate cash flows |
| Absolute Return | Simple profit/loss calculation | Doesn't account for time or multiple investments |
| IRR | Regular periodic cash flows | Assumes equal intervals between cash flows |
Calculate returns on your monthly SIP investments in mutual funds or stocks.
When you invest different amounts at different times (not a fixed schedule).
When you've withdrawn part of your investment before final redemption.
Calculate returns including EMIs, rental income, and final sale value.
Record every investment (outflow) and redemption (inflow) with exact dates.
Investments should be negative values (money leaving your pocket).
Redemptions and current portfolio value should be positive (money coming in).
Add today's portfolio value as the final positive cash flow to calculate unrealized returns.
For equity mutual funds, an XIRR of 12-15% over 5+ years is considered good. Debt funds typically yield 6-9%. Compare your XIRR with the benchmark index for a fair assessment.
Fund returns (CAGR) measure the fund's performance from a single start date. XIRR measures YOUR returns based on when YOU invested. Timing of investments significantly affects your actual returns.
Yes, XIRR can be negative when your total redemptions/current value is less than total investments, indicating a loss on your investment.
IRR assumes cash flows occur at regular intervals (monthly, yearly). XIRR handles irregular intervals by using actual dates. Use XIRR when your investment dates are not evenly spaced.
Yes, include dividends as positive cash flows on their actual receipt dates. This gives you the true total return including both capital gains and income.