XIRR Calculator
Work out the true annualised return on a SIP, where every instalment was invested for a different length of time — and see why the simpler CAGR number overstates it.
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Adjust the inputs on the left to see your xirr (true annualised return).
If you have ever looked at a SIP that turned ₹12 lakh into ₹23 lakh and tried to work out what annual return that represents, you have run into the problem XIRR solves. The money did not go in all at once. Your first instalment has been invested for ten years; last month's has been invested for one month. Any single "return" figure has to account for that.
What XIRR actually measures
XIRR — extended internal rate of return — is the constant annual rate that would have produced your current value given the exact dates and sizes of every cash flow. It is the number to quote when someone asks "what return did your SIP give?"
For a monthly SIP the maths reduces to solving for the rate r in the future-value-of-an-annuity equation, then annualising it. There is no closed-form solution, so it is found numerically — this calculator uses bisection, which converges reliably because the value grows monotonically with the rate.
The number most people quote instead is wrong
Take ₹10,000 a month for 10 years, now worth ₹23,00,000. Total invested is ₹12,00,000.
The tempting calculation is to treat ₹12 lakh as if it had been a lump sum on day one: (23 ÷ 12) raised to the power of 1/10, minus 1, which gives about 6.7%. That figure is simply wrong, and it understates your return badly.
The actual XIRR here is about 12.5% — nearly double. The reason is that your ₹12 lakh was never invested for ten years. On average, each rupee was invested for a bit over five. To reach ₹23 lakh with money that was only invested for half the period, the rate has to be much higher than the naive calculation suggests.
XIRR vs CAGR — when to use which
CAGR is correct when there is exactly one inflow and one outflow. Bought ₹1 lakh of a fund in 2016, worth ₹2.6 lakh today? CAGR is the right measure, and for that case CAGR and XIRR give the identical answer.
XIRR is correct the moment there is more than one cash flow, in either direction — a SIP, an SWP, top-ups, partial redemptions, a lump sum added midway. Real portfolios are almost always in this category.
The practical consequence: do not compare your SIP's XIRR against a fund's advertised CAGR. The fund's CAGR is a point-to-point figure for a lump sum held over that window. Your XIRR reflects your own contribution timing. They can differ substantially in either direction, and neither is lying.
Where the assumption in this calculator sits
This tool models a level monthly investment made on the same day each month. If your contributions varied, or you made lump-sum top-ups, or you redeemed partway, the true XIRR will differ — for irregular flows, the XIRR() function in Excel or Google Sheets with your actual transaction dates is the precise route. The CAS statement from CAMS or KFintech gives you every dated transaction you need to build that sheet.
A caveat worth knowing
XIRR assumes interim cash flows are reinvested at the same rate — a standard IRR assumption that rarely holds exactly. It also becomes unstable when cash flows change sign more than once (money in, money out, money in again), where more than one mathematically valid answer can exist. For an ordinary accumulating SIP neither issue arises.
XIRR — frequently asked questions
What is the difference between XIRR and CAGR?
CAGR measures the annual growth rate between exactly two points — one investment in, one value out. XIRR measures the annualised return when money went in or out at multiple different times, weighting each cash flow by how long it was actually invested. For a lump sum they give the same answer. For a SIP they diverge sharply: ₹10,000 a month for 10 years now worth ₹23 lakh has an XIRR of about 12.5%, while naively treating the ₹12 lakh invested as a day-one lump sum gives about 6.7%.
Why is my SIP XIRR higher than the return I calculated myself?
Almost certainly because you treated your total invested amount as if it had all been invested on day one. It was not — your most recent instalments have been invested for months, not years. Since a smaller effective time produced the same final value, the true annual rate must be higher. This is the single most common mistake in evaluating a SIP, and it consistently makes good returns look mediocre.
Should I compare my XIRR to the fund’s published returns?
Not directly. A fund’s published CAGR or "trailing return" is a point-to-point figure for a lump sum invested at the start of that window. Your XIRR depends on when your own money went in. If you started your SIP just before a drawdown, your XIRR will trail the fund’s CAGR even though you did nothing wrong; if you started before a rally, it will beat it. To judge the fund itself, compare its returns to its benchmark and category. To judge your own outcome, use XIRR.
What is a good XIRR for an equity SIP in India?
There is no fixed threshold, but a useful frame: over a full market cycle of seven years or more, a diversified Indian equity fund delivering an XIRR in the 11–14% range is performing broadly in line with long-run expectations. Over shorter windows XIRR is dominated by market conditions rather than fund quality — a two-year XIRR tells you about the market, not about your fund. Judge it against the fund’s benchmark over the same period rather than against an absolute number.
How do I calculate XIRR when my investments were irregular?
Use the XIRR() function in Excel or Google Sheets. Put every transaction date in one column and the amount in the next — investments as negative numbers, redemptions and the current value as positive — then call XIRR(values, dates). Your consolidated account statement from CAMS or KFintech lists every dated transaction across all your funds, which is exactly the input the function needs. This calculator assumes a level monthly investment, so it will not match an irregular history precisely.
Can XIRR be negative, and what does that mean?
Yes. A negative XIRR means your portfolio is worth less than you put in, on a time-weighted basis. It is common and expected in the first year or two of an equity SIP, especially if you started near a market peak — the early instalments simply have not had time to recover. A negative XIRR over seven or more years is a genuine signal worth investigating; over eighteen months it is mostly noise.
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Results from this calculator are estimates for informational use only — not financial, medical, or professional advice. Read our full disclaimer before acting on any number you see here.