XIRR Calculator - Mutual Fund Portfolio Returns
Calculate annualized returns (XIRR) for irregular mutual fund SIPs, lumpsums, and dated withdrawals.
• Use negative numbers (e.g. -5000) for outflows (investments, buy transactions).
• Use positive numbers (e.g. 23000) for inflows (redemptions, current valuation of active units).
Cashflow Transactions
| # | Date | Amount (₹) | Action |
|---|---|---|---|
| 1 | |||
| 2 | |||
| 3 |
Annualized Return Result
Worked Example: How to calculate returns for a 3-month SIP
Assume you did a ₹10,000 monthly SIP for 2 months, and on month 3 the portfolio is valued at ₹20,500. Enter it like this:
| Date | Amount | Type / Description |
|---|---|---|
| 2025-01-01 | -10000 | Month 1 SIP investment |
| 2025-02-01 | -10000 | Month 2 SIP investment |
| 2025-03-01 | 20500 | Current portfolio market value (positive) |
Calculation Methodology & Rules
The XIRR Calculator solves for the annualized internal rate of return (IRR) of irregular, dated cashflows.
XIRR Equation
XIRR is the rate r that solves the net present value (NPV) equation:
Σ [ CFk / (1 + r)(dk - d0) / 365 ] = 0
Where:
- CFk: Cashflow amount at transaction k (negative for purchase, positive for redemption/valuation)
- dk: Date of transaction k
- d0: Date of the first transaction in the series
- r: Annualized internal rate of return
Calculation Steps
Since r cannot be extracted algebraically, the calculator uses the **Newton-Raphson numerical solver**. If the algorithm does not converge within 100 iterations, the engine falls back to a robust **bisection search** between -99.9% and 1000% return limits.
Frequently Asked Questions
XIRR stands for Extended Internal Rate of Return. It is the annualized rate of return for a series of cash flows (both investments and redemptions) occurring at irregular intervals or dates.
CAGR (Compound Annual Growth Rate) only works for a single investment made at the start and redeemed at the end. For systematic plans like SIPs, where capital is deployed on different dates throughout the year, CAGR will be incorrect. XIRR accounts for each individual transaction date and returns the true annualized yield.
XIRR tracks cash flow direction. Outflows (money leaving your pocket to buy mutual fund units) must be entered as negative numbers. Inflows (money you receive from redemptions or the current market value of your holdings) are entered as positive numbers.
To calculate XIRR of an active portfolio: 1. Enter all historical SIP or lumpsum purchase dates with negative amounts. 2. Add a final row with today's date and the current total market value of your portfolio as a positive amount. 3. The resulting rate is your annualized return.