ReckonBoxHow the XIRR calculator works
XIRR is the single annual rate that makes the net present value of all your dated cashflows come out to zero. It is the number your mutual fund statement calls your return, because it weights every instalment and withdrawal by the exact date it happened. Give this tool a recurring plan, or type a custom list of dated transactions, and it reports that rate.
The two modes cover the two ways people actually invest. SIP or recurring mode takes an instalment amount, how often you invest, the first and last dates, and the value today. Custom mode lets you enter each buy and each redemption on its own date, so a lumpsum, a top-up, and a partial withdrawal can all sit in one calculation. A ₹10,000 monthly SIP that grows to ₹5,00,000 over three years works out to roughly 23.8 percent XIRR, even though the plain gain on it is 38.9 percent.
The formula XIRR actually solves
XIRR is the rate r that satisfies 0 = the sum of each cashflow Pᵢ divided by (1 + r) raised to the power (dᵢ minus d₁) over 365, where dᵢ is the date of that cashflow and d₁ is the earliest date. That day-count exponent is the whole point: money invested in January and money invested in December are discounted by different amounts, so the rate reflects how long each amount actually stayed invested.
There is no algebra that isolates r, so the rate has to be found by iteration. This calculator uses the Newton-Raphson method and falls back to bisection when Newton struggles to converge, which is the same approach Microsoft describes for its own XIRR function, solving until the result is accurate to about a millionth of a percent. Worth knowing, because some published XIRR pages quietly show the wrong equation: a few print a plain (final over initial) power formula, which is CAGR, not XIRR.
XIRR or CAGR, which one applies
CAGR fits one lumpsum held from start to end; XIRR handles many buys and withdrawals on irregular dates. A SIP breaks CAGR, because each instalment has its own holding period and CAGR only knows one start date. For a single lumpsum the two rates are identical, so the moment there is more than one dated flow, XIRR is the honest measure.
The gap also shows why a headline gain says little on its own. The same 100 percent total gain is a very different annual rate depending on how long it took, which is exactly the effect XIRR captures by date.
| Time to double | Absolute return | XIRR |
|---|---|---|
| 3 years | 100% | 26.0% |
| 5 years | 100% | 14.9% |
| 10 years | 100% | 7.2% |
Doubling in 3 years is a strong 26 percent a year; doubling in 10 is 7.2 percent, and XIRR draws that line automatically. To measure a single lumpsum without dates, the mutual fund return calculator reports the simpler CAGR.
A worked example with real dates
Picture a portfolio with a top-up and a partial withdrawal along the way. You invest ₹1,00,000 on 10 January 2022, add ₹50,000 on 10 July 2022, pull out ₹30,000 on 15 March 2023, and the holding is worth ₹1,60,000 on 10 January 2024.
| Date | Amount | Type |
|---|---|---|
| 10 Jan 2022 | ₹1,00,000 | Invested |
| 10 Jul 2022 | ₹50,000 | Invested |
| 15 Mar 2023 | ₹30,000 | Redeemed |
| 10 Jan 2024 | ₹1,60,000 | Value today |
Total invested is ₹1,50,000 and the money coming back is ₹1,90,000, so the absolute return is 26.7 percent. Run those four dates through the equation and the XIRR is about 14.9 percent a year. The absolute figure and the annual rate answer different questions, and only the second one is comparable across investments of different lengths.
How to calculate XIRR in Excel or Google Sheets
Both apps have the same function, so the steps are identical. Put every cashflow in one column and its date in the next, and enter money you invest as a negative number and money you redeem or the current value as a positive number. Then type =XIRR(values, dates) and format the cell as a percentage.
Using the example above, five rows of amounts (minus 100000, minus 50000, plus 30000, plus 160000) next to their dates, with =XIRR(B2:B5, A2:A5), returns the same 14.9 percent. If the cell shows a #NUM! error, the usual cause is that every amount is the same sign, so check that at least one figure is negative and one is positive, and add a starting guess like =XIRR(values, dates, 0.1) when the numbers are unusual.
What counts as a good XIRR
A concrete benchmark helps, and ICICI Direct puts it plainly: an XIRR above 12 percent is considered good for equity mutual funds, and above 7.5 percent is acceptable for debt funds. Treat those as reference points, not targets, because a fair XIRR really depends on the asset class, the period, and the risk you carried to earn it.
There is no single perfect number, and a high XIRR over a short, lucky window can flatter a fund that has not been tested through a downturn. Read the rate next to its time frame and its risk. Because mutual fund returns are market-linked and not guaranteed, this is a measurement of the past, not investment advice, so for decisions consult a SEBI-registered adviser. If you want to project a future value, the SIP calculator and the step-up SIP calculator do the forward maths.
Frequently asked questions
What is XIRR? XIRR, or extended internal rate of return, is the single annual rate that makes the net present value of a set of dated cashflows equal to zero. It is the return figure your mutual fund statement and apps like Groww or Zerodha Coin show, because it accounts for the exact date and size of every investment and withdrawal.
What is the difference between XIRR and CAGR? CAGR fits a single lumpsum held from start to end, so it needs just one buy and one sell. XIRR handles many transactions on irregular dates, which is how a SIP actually works, since every instalment has its own holding period. For one lumpsum the two are identical, but for a SIP only XIRR is meaningful.
How do I calculate XIRR in Excel or Google Sheets? Put each cashflow in one column and its date in the next, entering money you invest as a negative number and money you redeem or the current value as a positive number. Then use =XIRR(values, dates) in Excel, or the identical =XIRR(values, dates) in Google Sheets. Both return the annualised rate as a decimal, so format the cell as a percentage.
Why is my XIRR different from the absolute return? Absolute return divides total gain by total invested and ignores time. XIRR annualises and weights each rupee by how long it stayed invested. A ₹10,000 monthly SIP that grows to ₹5,00,000 over three years is about a 23.8 percent XIRR, even though its absolute return is 38.9 percent, because most instalments were invested for far less than three years.
What is a good XIRR for mutual funds? ICICI Direct notes that an XIRR above 12 percent is considered good for equity mutual funds, and above 7.5 percent is acceptable for debt funds. There is no single perfect figure, since a fair XIRR depends on the asset class, the period, and the risk you took, so compare it against a relevant benchmark for a fund like yours.
Can XIRR be negative? Yes. When the value you redeem is less than what you put in, XIRR is negative, showing the annual rate at which the money shrank. A ₹1,00,000 investment worth ₹80,000 two years later carries a negative XIRR of roughly minus 10.6 percent a year.
How does this calculator work out XIRR? It solves 0 equals the sum of each cashflow divided by (1 plus r) raised to the number of days since the first flow over 365. Because there is no direct formula for r, it uses the Newton-Raphson method and falls back to bisection if that does not converge, the same iterative approach Excel uses.
Why does Excel show a #NUM! error for XIRR? Excel returns #NUM! when the flows have no sign change, meaning you entered every amount as positive, or when it cannot converge within 100 tries. Enter at least one negative invested amount and one positive redeemed or current value, and add a guess such as =XIRR(values, dates, 0.1) if the numbers are unusual.
Is XIRR the same as IRR? IRR assumes cashflows are evenly spaced, one per period. XIRR is the extended version that uses actual calendar dates, so it is accurate when your investments and withdrawals happen on irregular days, which is almost always the case with SIPs and real portfolios.