Extended Internal Rate of Return • Multi-Date Cash Flow Solver

XIRR Calculator

Calculate the exact annualized return (XIRR) on your mutual fund SIPs, irregular stock transactions, real estate flips, or venture investments with irregular transaction dates.

Newton-Raphson Solver•Supports Irregular Dates•SIP & Lumpsum Presets•100% Free & Private

Cash Flow Transactions

Investments must be negative (-), Current value / redemptions positive (+).

Annualized Return (XIRR)

+18.71%

Total Capital Invested:

₹2,00,000

Total Inflows / Value:

₹5,30,000

Net Wealth Profit:+₹65,000

Holding Period:2 Years

Start to End Date:2022-01-01 → 2024-01-01

Calculated with Newton-Raphson bisection engine. 100% private.

The Definitive Guide to XIRR for Indian Mutual Funds & Equities

How Net Present Value (NPV) and the Newton-Raphson method calculate accurate annualized returns for irregular cash flows.

1. Why XIRR is the Industry Standard for SIPs

When you invest in a Mutual Fund SIP, each monthly installment enters at a different Net Asset Value (NAV) on a different calendar date. An installment invested in January 2021 has compounded for over 4 years, while an installment invested last month has compounded for only 30 days.

A single CAGR number cannot account for these staggered entry dates. XIRR solves this by finding the exact discount rate r that makes the Net Present Value (NPV) of all cash outflows and the final portfolio value equal to zero:

NPV = Σ [ C_i / (1 + r)^((d_i - d_0) / 365) ] = 0

Where: C_i = Cash flow amount, d_i = Date of cash flow, d_0 = Date of first cash flow, r = XIRR rate

2. Sign Convention Rules

Negative Amount (-): Represents investments, purchases, or SIP debits from your bank account.
Positive Amount (+): Represents dividends, redemptions, or the current market value of your holding as of today.
Minimum Requirement: You must provide at least one negative flow (money invested) and at least one positive flow (current value or payout).

3. Example Scenario: 3-Tranche SIP with Final Valuation

Date	Transaction Type	Cash Flow (₹)	Days from Start
2022-01-01	Initial Lumpsum	-₹1,00,000	0
2022-07-01	Top-up Purchase	-₹50,000	181
2023-01-01	Additional SIP	-₹50,000	365
2024-01-01	Current Value (Sale)	+₹2,65,000	730

*Total invested: ₹2,00,000 across 3 dates. Ending value: ₹2,65,000. Solved XIRR ≈ 18.42% p.a.

Single Lumpsum Only?If you only made a single one-time purchase with no interim cash flows, you can use our faster CAGR Calculator instead.

Frequently Asked Questions on XIRR

Master the math behind money-weighted returns and irregular cash flow analysis.

What is XIRR (Extended Internal Rate of Return)?

XIRR is a financial metric used to calculate the annualized rate of return for a series of cash flows occurring at irregular date intervals. It is the industry gold standard used by mutual fund portals, stock brokers, and CAMS/KFintech reports.

How does XIRR differ from CAGR?

CAGR only works for single lumpsum investments with one purchase date and one sale date. XIRR is essential whenever there are multiple staggered deposits (such as monthly SIPs, top-ups, dividend payouts, or partial redemptions) across different dates.

Why must investment amounts be negative in XIRR calculations?

In financial cash flow conventions, cash outflow from your bank account (purchases/investments) is treated as a negative number (-), while cash inflow to your account (dividends, redemption proceeds, or current portfolio valuation) is treated as a positive number (+). XIRR requires at least one negative and one positive cash flow to solve.

Can XIRR be negative?

Yes, if the total cash received or the current market value of the investment is lower than the sum of capital deposited over the investment horizon, the calculated XIRR will be negative, reflecting an annualized loss.

Why does short-term XIRR sometimes show extreme numbers like 150% or -80%?

XIRR annualizes returns over a 365-day basis. If an investment rises by 5% over just 10 days, annualizing that 10-day rate over 365 days yields a mathematically astronomical XIRR. XIRR is most reliable and meaningful for horizons exceeding 12 months.

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