Calculate Extended Internal Rate of Return for irregular investments and SIP returns
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The XIRR Calculator (Extended Internal Rate of Return Calculator) is an essential tool for investors who make irregular investments or have multiple cash flows at different dates. Unlike traditional return calculation methods, the XIRR calculator provides a more accurate measure of investment performance when dealing with Systematic Investment Plans (SIPs), mutual funds, or any investment strategy with multiple transactions.
The Extended Internal Rate of Return (XIRR) is a single rate of return that equalizes the present value of all cash inflows and outflows in an investment. The XIRR calculator helps investors determine the annualized rate of return for investments where multiple transactions occur at irregular intervals, making it particularly useful for SIP investments, mutual funds, and other investment strategies with varying cash flows.
Using our XIRR Calculator is straightforward and user-friendly:
While both XIRR and CAGR (Compound Annual Growth Rate) measure investment returns, they serve different purposes:
The XIRR calculator is particularly useful in the following scenarios:
Our XIRR Calculator offers several advantages for investors:
Unlike simple return calculations, XIRR considers the time value of money and provides precise annualized returns for complex investment scenarios.
Monitor your investment performance in real-time and make informed decisions about your portfolio allocation and future investments.
The XIRR formula uses the Net Present Value (NPV) approach to find the discount rate that makes the NPV of all cash flows equal to zero:
This calculation requires iterative methods like the Newton-Raphson technique to solve for XIRR, which our calculator performs automatically for accurate results.
Consider an investor who starts a monthly SIP of ₹10,000 on January 1, 2021, and continues for 3 years. The maturity value on January 1, 2024, is ₹6,00,000.
To optimize your investment performance and achieve better XIRR results:
Absolute returns show total percentage gain without considering time, while XIRR provides annualized returns that account for the time value of money and multiple cash flows.
Yes, the XIRR calculator works for any investment with multiple cash flows, including stocks, mutual funds, bonds, and real estate investments.
For active portfolios, calculate XIRR quarterly or semi-annually to track performance. For long-term investments like SIPs, annual XIRR calculations are sufficient.
A good XIRR depends on the asset class and market conditions. For equity mutual funds, 12-15% XIRR is considered decent, while 8-10% is reasonable for debt funds.