XIRR Calculator: True Returns on SIP & Irregular Investments
The Only Accurate Metric for SIP Returns
XIRR (Extended Internal Rate of Return) calculates the annualised return considering the exact date and amount of every cash flow. This makes it the gold standard for measuring SIP returns, where money enters at different times and earns returns for different durations.
Worked Example
You made these investments in a mutual fund:
| Date | Amount | Type |
|---|---|---|
| 1 Jan 2023 | ₹1,00,000 | Lumpsum |
| 1 Apr 2023 | ₹50,000 | Additional |
| 1 Jul 2023 | ₹50,000 | Additional |
| 1 Jan 2026 | +₹3,20,000 | Redemption (current value) |
- Total invested: ₹2,00,000 | Current value: ₹3,20,000
- Absolute return: 60% (sounds great)
- CAGR (from first investment): 38.9% (overstated — not all money was invested for 3 years)
- XIRR: 28.5% (true annualised return accounting for timing)
The XIRR of 28.5% is excellent but far less dramatic than the misleading 38.9% CAGR. Use the XIRR calculator to input your own cash flows and get accurate returns.
XIRR vs IRR
IRR assumes equal time gaps between cash flows. XIRR uses exact dates, making it more accurate for real-world investments where SIP dates, additional purchases, and partial redemptions happen irregularly.