Total Invested Outflows
₹ 1,50,000
Total Inflows / Current Value
₹ 2,15,000
Net Absolute Gain
₹ 65,000
Extended Internal Rate of Return (XIRR)
14.85%
About the XIRR Calculator
Our free XIRR Calculator helps investors determine the true annualized yield of investments involving multiple cash flows and irregular transaction dates, such as mutual fund SIPs, lump sums, and periodic stock purchases.
How XIRR Works and How It Is Calculated
Unlike standard IRR which assumes regular periodic intervals, XIRR (Extended Internal Rate of Return) accounts for the exact number of days between each transaction using net present value (NPV) equation balancing:
$$0 = \sum_{i=1}^{n} \frac{P_i}{(1 + r)^{(d_i - d_1) / 365}}$$
Where:
- P_i: Cash flow amount (negative for investments/outflows, positive for redemptions/current valuations)
- d_i - d_1: Exact number of days between transaction date and the initial cash flow date
- r: The annualized XIRR percentage rate computed via iterative numerical approximation (Newton-Raphson method)
How to Use the Calculator
Simply input your transaction history into the cash flow table:
- Date: The exact date of each investment or withdrawal.
- Amount: Use negative values (e.g., -100000) for money invested and positive values (e.g., 215000) for withdrawals or your current portfolio valuation.
Click the Calculate button to instantly view your total invested outflows, total inflows, net absolute gain, and annualized XIRR percentage.
Frequently Asked Questions (FAQs)
What is the difference between CAGR and XIRR?
CAGR (Compound Annual Growth Rate) measures growth from a single starting point to an ending value. XIRR is specifically designed to handle multiple irregular cash additions and withdrawals over time.
Why do I need to include negative and positive signs?
Negative signs indicate money leaving your pocket (investments), while positive signs indicate money returned to your pocket (redemptions or final portfolio worth), allowing the formula to find the exact breakeven discount rate.
Can XIRR be negative?
Yes. If your total redemptions and current portfolio value are lower than your cumulative invested capital, your XIRR will reflect a negative annualized return percentage.
