Loading inputs...

Advertisement
Knowledge Base

XIRR — Extended Internal Rate of Return

Solves: Σ[Cashflow_i / (1+XIRR)^(days_i/365)] = 0
XIRR accounts for irregular cash flows — perfect for SIPs, partial withdrawals, and dividends.
Unlike CAGR, XIRR handles multiple investments and redemptions at different dates.
Your actual mutual fund portfolio return should be measured via XIRR, not absolute return.
Negative XIRR means your investments have lost money on an annualized basis.
Most portfolio trackers auto-calculate XIRR — verify against your monthly statements.
Pro Tip
Export your complete transaction history and calculate XIRR to know your true portfolio performance.

XIRR — Extended Internal Rate of Return - Complete Guide

Everything you need to know about XIRR and how to optimize your financial strategy.

Understanding the Formula

The core calculation is based on:

Solves: Σ[Cashflow_i / (1+XIRR)^(days_i/365)] = 0

Key Concepts & Rules

  • XIRR accounts for irregular cash flows — perfect for SIPs, partial withdrawals, and dividends.
  • Unlike CAGR, XIRR handles multiple investments and redemptions at different dates.
  • Your actual mutual fund portfolio return should be measured via XIRR, not absolute return.
  • Negative XIRR means your investments have lost money on an annualized basis.
  • Most portfolio trackers auto-calculate XIRR — verify against your monthly statements.

Expert Strategy

Export your complete transaction history and calculate XIRR to know your true portfolio performance.

How to use this Calculator?

1. Enter your specific values in the input fields above.
2. The calculator will render instant results as you type.
3. Check the breakdown table for year-by-year projections.
4. Adjust the inputs to see how different scenarios impact the final result.