XIRR Calculator – Calculate Your True Investment Returns

The XIRR Calculator helps you accurately determine the annualized returns on your investments with irregular cash flows. By entering your investment amounts and corresponding dates, you can find out the exact effective rate of return, even when contributions or withdrawals happen at different times. This is especially useful for SIPs, lump sum investments, or multi-stage portfolio planning.

Understanding the XIRR of your portfolio allows investors to compare different investment options effectively and make informed financial decisions. This calculator simplifies complex calculations, giving you clear insights into how your money grows over time with varying cash flows.

How the XIRR Calculator Works

XIRR, or Extended Internal Rate of Return, is a powerful metric to calculate the effective annualized return of your investments when you have multiple cash flows occurring at irregular intervals. Unlike simple annual return calculations or CAGR, XIRR takes into account the exact timing of each investment and withdrawal, providing a more accurate picture of your portfolio performance.

Step-by-Step Guide to Using the XIRR Calculator

Enter all your investment amounts (positive values for inflows and negative values for withdrawals).
Enter the exact dates corresponding to each investment or withdrawal.
Click on the Calculate button to get the annualized XIRR rate.
Review the results to understand the true return on your investment, considering the timing and size of cash flows.

Why XIRR is Important

Many investors rely on average returns or CAGR calculations, which can be misleading if you make irregular investments or withdrawals. XIRR solves this problem by accurately accounting for the timing and magnitude of each cash flow. It is particularly useful for:

Systematic Investment Plans (SIPs) with variable monthly contributions
Portfolio with multiple lump sum investments at different dates
Evaluating mutual fund or stock returns with partial withdrawals
Comparing investments with irregular cash inflows

Practical Example of XIRR Calculation

Suppose you invest in a mutual fund as follows:

₹10,000 on 01-Jan-2024
₹15,000 on 01-Apr-2024
₹20,000 on 01-Jul-2024
You redeem ₹50,000 on 31-Dec-2024

By entering these cash flows and dates into the XIRR Calculator, it computes the annualized return considering the exact timing. This gives you a true picture of your investment performance, which is more accurate than simple returns or CAGR.

Tips for Accurate XIRR Calculation

Always enter the exact dates of each investment or withdrawal.
Use negative values for money invested (outflows) and positive values for money received (inflows).
Check that all cash flows are in the same currency.
Use this calculator for portfolios with multiple irregular investments to understand true growth.

By using the XIRR Calculator effectively, investors can make informed decisions, optimize their investment strategies, and track the actual growth of their portfolio over time.