XIRR Calculator
Calculate XIRR — the annualised return on investments with multiple cash flows like SIPs. Enter your monthly investment, duration and final value to find your true rate.
Formula last reviewed 4 August 2026 · How we verify our calculators
XIRR (annualised)
- Total invested
- ₹6,00,000
- Net gain
- ₹2,00,000
Updates live as you type
Frequently asked questions
XIRR (Extended Internal Rate of Return) is the annualised return on a series of cash flows that occur at irregular intervals — exactly the case with monthly SIPs and partial redemptions.
CAGR assumes a single investment and exit. SIPs invest money at many different times, so each instalment compounds for a different period. XIRR accounts for that and gives the correct rate.
It finds the discount rate that makes the net present value of all cash flows equal to zero, solved numerically with Newton-Raphson and a bisection fallback.
There is no universal benchmark, but for equity investments a long-term XIRR comfortably above inflation and fixed-deposit rates is generally considered healthy.
Your fund's fact sheet quotes XIRR, not CAGR. Here's why that matters.
A ₹10,000 monthly SIP kept up for 5 years and now worth ₹8,00,000 looks, at first glance, like it just needs a CAGR calculation on ₹6,00,000 invested versus ₹8,00,000 today. Run it that way and you'd get the wrong number — because unlike a single lump sum, your money didn't all go in on day one. The first instalment has been growing for nearly five years; the sixtieth has barely had a month. XIRR (Extended Internal Rate of Return) exists specifically to handle that mismatch, and this calculator resolves the defaults above to 11.43% per year, on a net gain of ₹2,00,000.
What XIRR is actually solving for
Behind the scenes, this calculator rebuilds your SIP as a list of individual cash flows — a fixed monthly outflow for every month you invested, followed by a single final inflow equal to what your holding is worth today. It then searches for the one discount rate that makes the net present value of that entire list equal exactly zero, using Newton-Raphson iteration with a bisection fallback for cases that refuse to converge quickly. Whatever rate satisfies that equation *is* the XIRR — not an average of anything, but the rate that reconciles precisely when each rupee left your account with what it's worth now.
Where CAGR would have misled you
CAGR only knows how to compare one entry point to one exit point, which makes it the wrong tool the moment you're investing monthly rather than once. Apply it to a SIP anyway and it either flatters or understates your real return depending on which way the market happened to move during the period — there's no consistent direction to the error, which is what makes it dangerous rather than merely imprecise. XIRR is the correct choice anywhere money entered or left more than once: SIPs, lump-sum top-ups layered onto an existing SIP, partial withdrawals along the way. To use the number well once you have it, compare the XIRR of similar funds over the identical period rather than in isolation, and weigh it against a safe benchmark — a fixed deposit rate, or inflation — to judge whether the market risk actually paid for itself.