XIRR Calculator
Work out the annualised return on money that went in and came out on different dates - the figure a SIP's total gain does not tell you.
What the XIRR calculator does
An XIRR calculator computes the money-weighted annualised return on a series of cashflows dated differently, which is what a SIP produces. Enter each amount invested and each amount received, including what the holding is worth today, and it returns the single annual rate that reconciles them - alongside the absolute return, which is usually the number people quote by mistake.
Your cashflows
Every amount is typed as a positive number. Say whether it went in or came back and the sign is applied for you — a return computed with the signs reversed looks entirely reasonable, which is why it is not left to a minus key.
Your return
- XIRR, per year
- 9.77%
- Invested
- ₹1,00,000.00
- Received
- ₹1,32,000.00
Total gain is 32.0% of what you put in — but spread over the time your money was actually invested, that is 9.77% a year. The two are not interchangeable, and the first is the one usually quoted.
Illustration only, computed from the assumptions shown — not a forecast, a projection of any product's performance, or a guarantee. Rates, prices and rules change, so the actual outcome will differ.
How the XIRR calculation works
0 = Σ Cₜ / (1 + r)^(dₜ / 365)
Cₜ is each cashflow — negative when money goes in, positive when it comes back — and dₜ is the number of days from the first one. XIRR is the rate r that makes those discounted amounts sum to zero. There is no closed form, so it is solved numerically. The day count is actual days over 365, the same convention a spreadsheet uses, which is why a period spanning a leap year gives a slightly lower rate than counting whole calendar years would. What makes the figure worth having is the weighting: an instalment invested for two months contributes far less than one invested for five years, so a series of equal SIP payments is nothing like a single investment of their total.
Frequently asked questions
Why is my XIRR so different from my total gain?
Total gain is what you made as a percentage of what you put in, with no reference to time. XIRR is what that works out to per year, weighted by how long each instalment was actually invested. A SIP's later instalments have been invested for months rather than years, so a total gain of 8% on a one-year SIP can be an XIRR near 15% - the money was only in for part of the period.
What should I enter as the last row?
What the investment is worth today, as a received entry, dated today. XIRR needs money to have come back before it can compute a return; until it does, the series is all in one direction and there is nothing to annualise. If you have already redeemed, enter the redemption instead.
Which day count does this use?
Actual days divided by 365, which is the convention spreadsheet XIRR functions use. That is why a holding that exactly doubles over what looks like five calendar years returns slightly under 14.87% - the period spans two leap years, so it is 1,827 days rather than 1,825.
Can XIRR fail to produce an answer?
Yes, and for three different reasons: fewer than two entries, every entry going the same way, or a series with no single annualised rate that explains it. The last usually means two entries on the same day pulling in opposite directions, or one amount far out of scale with the rest. Each is reported separately rather than as a generic failure.
GrowIQ Capital provides financial data analytics, market information and educational content. We are not a SEBI-registered Investment Adviser or Research Analyst. Nothing on this platform constitutes investment advice or a recommendation to buy or sell any security. No returns are assured or guaranteed. Any illustration of returns is a mathematical projection, not a promise. Past performance is not indicative of future returns and does not guarantee future results.