XIRR Calculator

XIRR (Extended Internal Rate of Return) is a method to calculate the annualized return on investments where cash flows occur at irregular intervals. Unlike CAGR which assumes a single investment and single redemption, XIRR handles multiple investments and withdrawals made on different dates.

XIRR is particularly useful for measuring the actual performance of SIPs, where you invest different amounts on different dates, and for portfolios with multiple buy and sell transactions.

• Use XIRR when: You have multiple cash flows at irregular dates (SIPs, additional purchases, partial redemptions)
• Use CAGR when: You made a single lump sum investment and want to measure point-to-point return
• Use Absolute Return when: Investment period is less than one year

XIRR provides the most accurate picture of your investment performance when dealing with real-world investment patterns that involve multiple transactions.

XIRR solves for the rate r in the following equation:

0 = Σ [Ci / (1 + r)^((di - d0) / 365)]

• Ci = Cash flow at date i (negative for investments, positive for redemptions)
• di = Date of cash flow i
• d0 = Date of the first cash flow
• r = The XIRR rate to be solved

The equation is solved iteratively using numerical methods since there is no closed-form solution.

• Step 1: Enter each cash flow with its date — use negative values for investments and positive values for withdrawals
• Step 2: Include the current portfolio value as the final positive cash flow with today's date
• Step 3: Click calculate to get your annualized return percentage