What is XIRR?
XIRR (Extended Internal Rate of Return) measures the annualised return of an investment when money is invested or withdrawn on different dates.
Unlike CAGR, XIRR:
- Considers when each investment was made
- Weighs earlier investments more than later ones
- Works accurately for SIPs and portfolios with multiple transactions
In simple terms, XIRR tells you:
"What single annual return explains all my investments and returns together?"
When should you use an XIRR calculator?
You should use XIRR instead of CAGR if you have:
- SIPs or recurring investments
- Portfolio value instead of a single fixed maturity amount
- Goal-based investing spread across time
If your investments happen on more than one date, XIRR is the correct return metric.
How this XIRR calculator works
This calculator uses four simple inputs:
- Investment frequency: monthly, quarterly, yearly, or 14-day investments
- Start date and end date: when investments began and when the value is measured
- Recurring investment amount: amount invested at each interval
- Total maturity or current value: final portfolio value or maturity amount
Based on these inputs, the calculator:
- Builds all cash flows internally
- Calculates XIRR using industry-standard financial formulas
- Shows total invested, total value, net gain, and time period
- Visualises growth using a wealth projection chart
How to enter values correctly
To get an accurate XIRR:
- Choose the same frequency you actually invest with
- Use real start and end dates, not rounded estimates
- Enter the actual recurring investment amount
- Use the current or maturity value you want to evaluate
XIRR is sensitive to timing. Even small date changes can affect results.
What does a negative XIRR mean?
A negative XIRR means:
- Your current value is lower than total invested
- Investments were made recently and have not had time to grow
- Market performance has been weak during your investment period
Negative XIRR does not mean a mistake. It reflects real timing and market impact.
XIRR vs CAGR – Key difference
| Metric |
CAGR |
XIRR |
| Assumes one investment |
Yes |
No |
| Handles SIPs |
No |
Yes |
| Considers timing |
No |
Yes |
| Suitable for portfolios |
No |
Yes |
Does XIRR include tax, charges, or exit load?
No. XIRR only reflects the cash flows you enter.
If you want tax, exit load, or fees included:
- Reduce the maturity value accordingly
The calculator will then reflect the net impact.
Why investors prefer XIRR for SIP evaluation
SIPs spread money across market cycles. Two investors can invest the same amount but earn different returns due to timing.
XIRR captures this timing effect. That’s why it is widely used by mutual fund investors, financial planners, and portfolio review tools.
Things to remember while using XIRR
- XIRR is not future return prediction
- It reflects past or implied performance
- It assumes reinvestment at the same rate
- Short time periods can distort results
Always combine XIRR with time horizon, risk profile, and asset allocation.
Who should use this XIRR calculator?
This calculator is useful for:
- SIP investors checking actual returns
- Investors comparing multiple funds
- Professionals reviewing goal-based investments
- Anyone confused by different return numbers
It is designed for Indian investors and supports local formats.
For a single lump sum, CAGR is fine. For recurring investments, XIRR is more accurate. Compare both with the CAGR calculator.
Related tools: explore the SIP calculator for contribution planning or browse all tools in our calculators hub.
Learn how a small-cap fund works if you are comparing equity fund returns.