XIRR Calculator
Calculate the true annualised return on your SIP, mutual fund, or any irregular investment — powered by Newton-Raphson iteration.
click Calculate XIRR
What is XIRR in Mutual Funds?
XIRR (Extended Internal Rate of Return) is the single most important metric to measure the true performance of your mutual fund SIP or any investment made at irregular dates and amounts.
Unlike simple returns, XIRR accounts for when each rupee was invested and how long it was invested for. A ₹10,000 SIP started 10 years ago has worked harder than one started 1 year ago — XIRR reflects this correctly.
∑ Cᵢ / (1 + r)^tᵢ = 0
// Where:
Cᵢ = Cash flow (−ve invest, +ve redeem)
tᵢ = (Date of flow − Date of 1st flow) / 365
r = XIRR (solved by Newton-Raphson)
Because there is no closed-form solution, XIRR is computed numerically using the Newton-Raphson iteration method — the same algorithm used by Excel's XIRR() function.
XIRR vs CAGR — What's the Difference?
| Parameter | XIRR | CAGR |
|---|---|---|
| Full Form | Extended Internal Rate of Return | Compound Annual Growth Rate |
| Investment Type | Multiple, irregular dates/amounts | Single lump sum |
| Best For | SIP, staggered investments | One-time mutual fund investment |
| Accounts for Dates? | ✅ Yes — exact transaction dates | ❌ No — only start and end date |
| Accuracy | Very high for real portfolios | Accurate only for lump sum |
| Excel Function | =XIRR(values, dates) | =(End/Start)^(1/n) − 1 |
| Result | Annualised return | Annualised return |
👉 Rule of thumb: Use CAGR for lump sum, XIRR for SIP/staggered investments. For a fair comparison between funds, always use XIRR.
How to Calculate XIRR in Excel
- Column A – Dates: Enter each transaction date in a column (e.g. A1:A13). Format cells as Date (DD-MM-YYYY).
- Column B – Cash Flows: Enter investment amounts as negative numbers and redemption/current value as a positive number.
- Apply Formula: In an empty cell, type
=XIRR(B1:B13, A1:A13)and press Enter. - Format as %: Right-click the result → Format Cells → Percentage with 2 decimal places. The result is your annualised XIRR.
- Optional Guess: Add a third argument (e.g. 0.1 for 10%) if Excel shows a #NUM! error:
=XIRR(B1:B13, A1:A13, 0.1)
XIRR Calculation Example
Suppose you did a monthly SIP of ₹5,000 for 12 months and redeemed ₹65,000 at the end. Here's how XIRR is computed:
| Transaction | Date | Cash Flow (₹) | Type |
|---|
Total Invested: ₹60,000 | Redeemed: ₹65,000 | Absolute Gain: ₹5,000 (8.3%)
Despite the modest absolute return, XIRR is 17.2% because earlier instalments were invested for longer and earned compounded returns. This is why XIRR > simple return for SIPs.
📌 When to Use XIRR
Use XIRR whenever you have multiple transactions at different dates — SIP investments, partial redemptions, dividend reinvestments, or portfolio top-ups.
📊 Good XIRR Range
Equity funds: 12–20% is excellent. Debt funds: 6–9% is good. Index funds: 10–14% is typical. Anything above 15% long-term in equity is outstanding.
⚠️ XIRR Limitations
XIRR assumes all cash flows are reinvested at the same rate. It can also return multiple solutions for unusual cash flow patterns (e.g. multiple sign changes).
🧮 Newton-Raphson
Our calculator uses the Newton-Raphson numerical method — identical to Excel — iterating 1,000+ times to converge on the XIRR accurate to 6 decimal places.
Related Financial Calculators
What is XIRR in mutual funds?
XIRR (Extended Internal Rate of Return) in mutual funds is the annualised return on investments made at irregular intervals and amounts. It is the most accurate method to calculate SIP returns as it accounts for the exact dates and amounts of each investment and redemption.
What is the difference between XIRR and CAGR?
CAGR assumes a single lump-sum investment over a fixed period. XIRR handles multiple investments and withdrawals at different dates and amounts, making it far more accurate for SIPs and staggered investments. XIRR equals CAGR only when there is exactly one investment and one redemption.
How to calculate XIRR in Excel?
In Excel, use =XIRR(values, dates) where 'values' is a range of cash flows (investments as negative, redemptions as positive) and 'dates' is the corresponding range of transaction dates. The result is automatically annualised as a decimal — format as % to read easily.
Why are investment amounts negative in XIRR?
The sign convention in XIRR (same as Excel) treats money leaving your pocket as negative (investments/purchases) and money returning to you as positive (redemptions/maturity). This sign pattern is essential for the Newton-Raphson solver to find the correct root.
What is a good XIRR for mutual funds in India?
Benchmarks for India:
- Large-cap equity funds: 10–14% XIRR is good
- Mid/small-cap funds: 14–20%+ over long periods
- Balanced/hybrid funds: 10–13% is typical
- Debt/liquid funds: 6–9% is normal
- Above 15% p.a. sustained over 10+ years is excellent
Can XIRR be negative?
Yes. XIRR is negative when your portfolio's current value is less than the total amount invested — this happens during prolonged market downturns or if you invested at peak valuations. A negative XIRR means you are losing money on an annualised basis.