Enter your investments (negative values) and returns (positive values) with their dates.
XIRR (Extended Internal Rate of Return) is a financial metric that calculates the annualized return on investments with irregular cash flows. Unlike simple return calculations or CAGR (Compound Annual Growth Rate), XIRR accounts for the exact timing of each investment and return, providing a more accurate measure of performance.
This advanced calculation method is particularly useful for evaluating investments like mutual fund SIPs, stock market transactions, real estate investments, or any scenario where money is invested or withdrawn at different points in time.
Traditional return calculations fall short when dealing with multiple transactions over time. XIRR solves this by considering both the amount and the precise timing of each cash flow, giving you a true picture of your investment performance.
For example, if you've been investing monthly in a mutual fund through SIP or making periodic stock purchases, XIRR will tell you exactly what annualized return you're earning, accounting for all your investments at their specific dates.
Follow these simple steps to calculate your investment returns accurately:
Choose your preferred currency symbol and date format from the dropdown menus to ensure the calculator works with your local conventions.
Add all your investment transactions:
Click the "+ Add Cash Flow" button to include all your investment and redemption transactions. The more accurate your data, the more precise your XIRR calculation will be.
Click the "Calculate XIRR" button to see your annualized return percentage. The results will show your XIRR along with a visual representation of your cash flows.
Use the "Print Results" or "Export as PDF" buttons to save your calculation for future reference or to share with your financial advisor.
CAGR (Compound Annual Growth Rate) calculates returns assuming a single investment and single redemption after a fixed period. XIRR, on the other hand, handles multiple investments and redemptions at irregular intervals, making it more suitable for real-world investment scenarios like SIPs or periodic stock purchases.
In financial calculations, cash outflows (money going out from your pocket) are represented as negative values, while inflows (money coming back to you) are positive. This convention helps the XIRR formula correctly account for the direction of cash movements.
Yes, a negative XIRR indicates that your investments have lost money overall. It means the present value of your outflows (investments) exceeds the present value of your inflows (returns), resulting in a net loss on an annualized basis.
Our calculator uses the same iterative numerical methods employed by financial institutions and spreadsheet software like Excel. The results are accurate to within 0.01% when compared to professional financial tools.
For equity investments in emerging markets, a good long-term XIRR might range between 12-15%. For developed markets, 8-10% is often considered satisfactory. Debt instruments typically yield 6-8%. However, these benchmarks vary based on economic conditions and your risk appetite.
Absolutely! XIRR is perfect for real estate as it accounts for irregular cash flows like down payments, mortgage payments, renovation costs, rental income, and eventual sale proceeds - all at their actual dates of occurrence.
Fund houses typically report point-to-point or trailing returns, while XIRR calculates your personal return based on your specific investment dates and amounts. Your XIRR might be different due to rupee-cost averaging in SIPs or market timing of your investments.
You can add as many cash flows as needed - the calculator handles hundreds of transactions efficiently. However, for very large datasets, you might want to use spreadsheet software for easier data management.
No, XIRR calculates pre-tax, nominal returns. For after-tax returns, you'd need to deduct applicable taxes from your inflows before calculation. To account for inflation, you can subtract the inflation rate from your XIRR to get real returns.
Yes, simply combine all cash flows from different investments into one calculation. The resulting XIRR will represent the blended annualized return across all your investments considered as a single portfolio.
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