What is XIRR Calculator?
An XIRR (Extended Internal Rate of Return) Calculator helps you determine the actual annualized return on investments that have irregular cash flows at different times. Unlike simple return calculations, XIRR considers the exact dates of each investment and redemption.
Why Use XIRR?
XIRR is essential when you have:
- SIP Investments: Monthly investments over years need XIRR for accurate returns
- Irregular Investments: Lump sum additions at various times
- Partial Redemptions: Taking out money at different times
- Dividend Reinvestments: Tracking actual compounded growth
XIRR vs CAGR vs Absolute Return
- XIRR: Best for irregular cash flows, gives true annualized return
- CAGR: Works only for single lump-sum investments held for a period
- Absolute Return: Simple profit percentage, ignores time factor
How to Use This Calculator
- Enter each investment as a negative amount with its date
- Enter redemptions or current value as positive amounts
- The final entry should be your current portfolio value (positive)
- Click Calculate to see your actual annualized return
Frequently Asked Questions
What is a good XIRR for mutual funds?
For equity mutual funds, an XIRR of 12-15% over 5+ years is considered good. For debt funds, 7-9% is reasonable. Compare your XIRR against benchmark indices for context.
Why is my XIRR different from the fund return?
Fund returns show point-to-point growth, while XIRR accounts for YOUR actual investment timing. If you invested more during market highs, your XIRR will be lower than the fund stated return.
Can XIRR be negative?
Yes, a negative XIRR indicates you have lost money on your investment. This happens when total returns are less than total invested amount.