XIRR
Calculator
Annualised return on irregular cash flows — SIPs, lumpsums and redemptions on any dates — solved by Newton-Raphson on NPV with exact day-count.
Cash flows
Invested = negative. Redeemed / current value = positive. Add a final positive row for today's value.
Result
How it's calculated
XIRR is the single annual rate r that makes the net present value of every dated cash flow equal to zero:
- NPV(r) = Σ Cᵢ ÷ (1 + r)(dᵢ − d₀)/365, where Cᵢ is each cash flow, dᵢ its date and d₀ the earliest date.
- There is no closed form, so we solve it with Newton-Raphson: starting from a guess, we step r by −NPV(r) ÷ NPV′(r) and repeat until NPV is essentially zero.
- The day-count uses actual calendar days divided by 365, so a flow held 366 days counts as slightly more than one year.
Example: invest ₹10,000 on 01-Jan-2024 (−10000) and redeem ₹11,000 on 01-Jan-2025 (+11000, 366 days). The rate that zeroes NPV is about 9.97% — that's your XIRR. Sign matters: investments are negative, money you get back is positive.
FAQ
What is XIRR?
XIRR is the annualised internal rate of return for cash flows on irregular dates. It is the discount rate that makes the present value of all flows net to zero, using actual days over a 365-day year.
How is XIRR different from CAGR?
CAGR assumes one investment and one exit. XIRR handles many investments and withdrawals on different dates — like a SIP — by weighting each flow by exactly how long it was invested.
What sign should each cash flow have?
Money in (investments, SIP instalments) is negative; money out (redemptions, current value) is positive. You need at least one of each for a valid XIRR.
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