What is an XIRR Calculator?
An XIRR calculator works out the annualised return on investments and withdrawals made on different dates, such as SIP instalments and partial redemptions, by discounting each cash flow by its own date.
XIRR Calculator gives the fair yearly return when money goes in and comes out at different times, which is how SIPs, top-ups and partial withdrawals actually work. Mutual fund statements report XIRR for the same reason.
How to use the XIRR Calculator
- Enter the monthly sip amount (anywhere from ₹100 to ₹10,00,000). Type it in the box or drag the slider.
- Enter the number of instalments (anywhere from 2 months to 360 months). Type it in the box or drag the slider.
- Enter the current value (anywhere from ₹0 to ₹1,00,00,00,000). Type it in the box or drag the slider.
- Read the result at the top of the results, then check the breakdown below it.
- Change one input at a time to compare scenarios, and note how much each change moves the result.
Benefits of using the XIRR Calculator
- Turns raw before-and-after numbers into a figure you can compare across investments.
- Shows the working, so the result is easy to verify in a spreadsheet.
- Helps you judge performance fairly by accounting for time and costs.
- Free, instant and private: nothing you enter is stored.
Mistakes to avoid with the XIRR Calculator
The common mistake is quoting absolute return for a SIP as if it were a yearly return.
Read XIRR alongside the absolute gain, especially over short periods where annualising exaggerates small moves.
Helpful checks before using the result
These checks make a xirr more useful in practice.
- Start with a realistic base case rather than the first value that fits the range slider.
- Change one major assumption at a time so the effect stays easy to interpret.
- Use the result to compare scenarios, not as a final provider quote or guaranteed outcome.
- Verify rates, rules, and product terms separately before acting on the estimate.
Why XIRR, not CAGR or absolute return, for SIPs
Each SIP instalment is invested for a different length of time.
- Absolute return treats the first and last instalment as if both were invested for the whole period, so it understates or overstates the yearly figure.
- CAGR assumes one amount invested on day one, which is not true for a SIP.
- XIRR discounts each cash flow by its own date, so it is directly comparable with an FD rate or a fund’s yearly return.
Reading an XIRR figure
Context matters as much as the number.
Short periods
Under a year, a small gain can annualise to a very large XIRR. Read it alongside the absolute gain.
Negative XIRR
Means the current value is below what was invested, adjusted for timing.
Comparing funds
Compare XIRR for the same dates and cash flows, otherwise market timing distorts the comparison.
XIRR Calculator FAQs
How is XIRR calculated?
XIRR is the rate r that makes the sum of every cash flow, discounted by (1 + r) raised to its years from the first date, equal to zero. It is found by trial, the same way Excel’s XIRR function does it.
Is an XIRR of 12% good?
For a long-running equity SIP, 12% is in line with long-term market averages, but it depends on the period and the type of fund. Compare with the fund’s benchmark over the same dates.
What does a 20% XIRR mean?
Your investments grew as if every rupee earned 20% a year, compounded, for the time it was invested. Over short periods such figures are common in rising markets and can change quickly.
How do I enter withdrawals?
Switch to “Enter dates” and mark the row as Received. The current value of what you still hold should be added as a final Received amount on today’s date.
