What is XIRR?

XIRR calculates your true annualised return when you invest on different dates -- like ad-hoc lump sums or irregular SIP payments. Unlike simple returns, XIRR accounts for the timing of each investment.

Investments: enter as negative (e.g. -5000)Redemption or current value: enter as positive (e.g. 85000)

Date	Amount (Rs)	Note	Actions
	₹	Investment
	₹	Investment
	₹	Redemption

How the XIRR Calculator Works

XIRR (Extended Internal Rate of Return) calculates the annualised return of a series of cash flows that happen on different, irregular dates -- exactly what happens when you invest through SIPs, top-ups, partial withdrawals, or a mix of lump sums at different times. Unlike CAGR, which needs just one starting and one ending value, XIRR can handle any number of investments and withdrawals spread across any dates.

There's no simple algebraic formula to solve for XIRR directly, so this calculator uses the Newton-Raphson method -- an iterative numerical technique that keeps refining its guess for the rate until the total of all cash flows, discounted back to today at that rate, comes as close to zero as possible. This is the same approach spreadsheet software uses for its own XIRR function.

Find r such that: Σ [CFᵢ ÷ (1 + r)^(dᵢ / 365)] = 0, where CFᵢ is each cash flow (negative for investments, positive for redemptions) and dᵢ is the number of days from today to that cash flow's date.

Worked example

Say you invested ₹50,000 on 1 Jan, another ₹30,000 on 1 Jul the same year, and your holding is worth ₹1,00,000 today. Enter these three rows -- two negative (investments) and one positive (current value, dated today) -- and the calculator solves for the single annualised rate that makes those cash flows balance.

Frequently asked questions

Why did my XIRR calculation say 'did not converge'?

This usually means the cash flows don't have a mathematically valid solution -- for example, if every entry is negative (only investments, no current value or redemption) there is no rate that can balance them. Make sure at least one row is positive (your current holding value or an actual redemption) and the dates are realistic.

Should the current value of my investment be included as a cash flow?

Yes -- treat it as a positive cash flow dated today. Without it, XIRR has no way to know what your investments are currently worth, only what you put in.

How is XIRR different from the returns my mutual fund statement shows?

Most fund fact sheets show CAGR or point-to-point returns for a lump sum. If you've invested via SIP or added/withdrawn money at different times, XIRR is the more accurate measure of your personal annualised return, since it accounts for exactly when each rupee went in or came out.