XIRR Calculator
Calculate an annualized, money-weighted return from investments, withdrawals and portfolio values recorded on exact dates.
Last Updated: July 22, 2026Calculate Return from Dated Cash Flows
Enter investments as negative amounts. Enter withdrawals, income and the latest portfolio value as positive amounts.
| # | Date | Amount | Description, optional | Remove |
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Add valid dated cash flows, then select Calculate XIRR.
| Calendar year | Investments | Inflows or value | Net cash flow | Transactions |
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XIRR is an annualized money-weighted return. It depends on the amount and timing of every cash flow. It is not a forecast and does not measure volatility or investment risk.
What Is XIRR?
XIRR means extended internal rate of return. It calculates one annualized rate for a series of cash flows that occur on different dates. The method is useful when money enters and leaves an investment at irregular intervals.
A typical portfolio has more than one transaction. You might make monthly SIP investments, add a lump sum after a market fall, receive a cash dividend, make a partial withdrawal and value the remaining units today. Each amount stays invested for a different number of days. XIRR accounts for those differences.
XIRR is money-weighted. Large transactions influence the result more than small transactions. Their timing also matters. This makes XIRR useful for measuring the return experienced by an investor, but it is not always the best measure for judging a fund manager whose result should exclude the investor's deposit and withdrawal decisions.
How to Use This XIRR Calculator
- Select the currency used for every cash flow. Do not mix rupees, dollars or other currencies in one calculation.
- Enter every investment or payment as a negative amount. For example, enter a ₹10,000 SIP as -10000.
- Enter every redemption, distribution or cash receipt as a positive amount.
- Add the current or final portfolio value as a positive amount on the valuation date. Without a closing value, an active investment schedule is incomplete.
- Add or remove rows as needed. The tool accepts up to 100 dated transactions.
- Enter a benchmark annual rate. The tool uses it to calculate XNPV and the annual return gap.
- Select Calculate XIRR. Review the annualized return, total cash figures, benchmark comparison and year summary.
Dates may be entered in any order because the calculator sorts them before solving. Two cash flows on the same date are allowed. At least one negative and one positive amount must remain after all same-date amounts are considered.
XIRR Formula
0 = Σ Ci ÷ (1 + r)(di − d0) ÷ 365
- Ci is each cash-flow amount.
- di is the date of that cash flow.
- d0 is the earliest cash-flow date.
- r is the annual XIRR that makes the discounted cash flows total zero.
There is usually no direct algebraic shortcut for r. A calculator or spreadsheet tests rates until it finds a rate at which XNPV is approximately zero. This tool scans a wide rate range and then refines every detected sign-changing root.
Microsoft documents XIRR as the rate associated with XNPV equal to zero and uses a 365-day year. Google Sheets also requires at least one negative and one positive cash flow. You can compare the method with the official Microsoft XIRR documentation and Google Sheets XIRR guidance.
Worked XIRR Example
Assume an investor makes these transactions:
| Date | Cash flow | Meaning |
|---|---|---|
| January 15, 2022 | -₹1,00,000 | Initial investment |
| September 15, 2022 | -₹25,000 | Additional investment |
| June 10, 2023 | -₹30,000 | Additional investment |
| November 20, 2024 | ₹15,000 | Partial withdrawal |
| July 22, 2026 | ₹2,10,000 | Remaining portfolio value |
Total invested is ₹1,55,000. Positive cash flows total ₹2,25,000, so the simple cash gain is ₹70,000. XIRR goes further by discounting each amount for its exact holding period. Load this example in the calculator to see the annualized result and XNPV comparison.
How to Record Investments, Withdrawals and Current Value
Use the Investor's Point of View
Money paid by you is negative. Money received by you is positive. This sign convention is essential. A purchase, SIP instalment, capital call or project cost is normally negative. A redemption, rent receipt, dividend taken in cash, project distribution or sale value is positive.
Add a Closing Value
For an investment you still own, add its market value as a positive cash flow on the date of measurement. Do not also add a future sale value. The closing figure should represent what the holding is worth on the chosen valuation date.
Avoid Double Counting
If dividends were reinvested and are already included in the current portfolio value, do not enter them as positive cash withdrawals. If dividends were paid into your bank account and are no longer in the portfolio, enter them as positive cash flows on their receipt dates.
Use Net Amounts When Measuring Net Return
Include brokerage, loads, platform charges and other transaction costs in the cash flows when you want an investor-level return after those costs. Investment fees reduce the result you keep. The SEC's fund fee study explains how even recurring expense differences affect long-term balances.
XIRR vs CAGR, IRR, ROI and Absolute Return
| Metric | Best use | Exact dates? | Multiple cash flows? |
|---|---|---|---|
| XIRR | Irregular investments, withdrawals and distributions | Yes | Yes |
| IRR | Cash flows at equal periods, such as annual project flows | No | Yes |
| CAGR | One beginning value and one ending value | Uses period length | No |
| ROI | Total profit compared with total cost | No | Limited |
| Absolute return | Simple total gain or loss percentage | No | Limited |
Use the CAGR Calculator for one purchase and one final value with no intermediate cash flows. Use XIRR when transaction timing changes the return. A SIP is a common XIRR use case because each instalment has a different holding period.
How to Interpret Your XIRR Result
Positive XIRR
A positive XIRR means the discounted positive cash flows offset the investments at an annual rate above zero. A 12% XIRR is an annualized result, not a promise that the portfolio rose exactly 12% in every calendar year.
Zero XIRR
An XIRR near 0% means the timing-adjusted value of inflows roughly equals the outflows without annual growth. The nominal cash gain might still be positive or negative if cash flows occurred at different times.
Negative XIRR
A negative XIRR means the schedule produces a timing-adjusted loss. Rates remain above -100% because the formula requires 1 + r to stay positive. Review signs, dates and closing value before accepting an unexpected negative result.
Benchmark Gap and XNPV
The benchmark gap subtracts your entered benchmark rate from XIRR. XNPV discounts every cash flow at the benchmark rate. A positive XNPV means the schedule created value above the entered hurdle rate under the calculation. A negative XNPV means it fell short.
Why XIRR Sometimes Has No Result or Multiple Results
XIRR needs at least one negative and one positive cash flow on different dates. If all amounts have the same sign, no rate will balance the equation. A missing final value is another common reason an active portfolio cannot be evaluated properly.
Unusual schedules with cash-flow signs changing several times may produce more than one mathematically valid XIRR. For example, a negative investment followed by a large positive distribution and then another large negative obligation can cross zero at multiple rates. A single XIRR becomes ambiguous in this situation.
This calculator reports the number of sign-changing roots it detects. If it finds several, it displays the root closest to 10%, a common spreadsheet starting guess, and warns you. Review the full cash-flow schedule, XNPV profile and economic context instead of selecting a convenient rate.
A root outside the scanning range or a root that touches zero without changing sign might not be detected. Spreadsheet programs also use iterative methods and may return an error or a different root depending on the starting guess.
Where XIRR Is Useful
- Mutual funds: SIP instalments, lump sums, redemptions and the current fund value.
- Stock portfolios: purchases, sales, dividends withdrawn and closing market value.
- Real estate: down payment, renovation costs, rent received and net sale proceeds.
- Private investments: capital calls, distributions and estimated residual value.
- Business projects: dated costs, cash benefits and terminal value.
- Loans from the lender's view: funds advanced as negative and repayments received as positive.
Keep the perspective consistent. Borrower and lender cash-flow signs are opposite. Mixing perspectives produces a meaningless result.
Limitations of XIRR
XIRR compresses an entire cash-flow history into one annual rate. It does not show volatility, drawdowns, liquidity, credit risk or the probability of achieving a future return. Two investments with the same XIRR might have different risk and cash-flow patterns.
XIRR is sensitive to estimated terminal values. An unrealized property, private company or illiquid asset may not be worth its reported valuation in a sale. Test conservative values instead of treating one estimate as certain.
The result is nominal unless your cash flows are already inflation-adjusted. It is also pre-tax or after-tax depending on the amounts entered. Use net cash flows for an after-fee, after-tax estimate, but confirm tax treatment with a qualified professional.
Common XIRR Mistakes
- Entering every transaction as positive.
- Leaving out the current or final portfolio value.
- Using order dates instead of actual settlement or cash-flow dates.
- Mixing multiple currencies without converting them on each transaction date.
- Adding reinvested dividends that are already included in portfolio value.
- Ignoring fees, taxes or sale costs when a net return is required.
- Comparing XIRR with a benchmark return measured over a different period or risk level.
- Treating an annualized result from a short period as a reliable long-term forecast.
Related Calculators
Frequently Asked Questions
What does XIRR stand for?
XIRR stands for extended internal rate of return. It finds an annualized return for cash flows recorded on exact, potentially irregular dates.
How do I calculate XIRR for a SIP?
Enter each SIP instalment as a negative amount on its transaction date. Add withdrawals as positive amounts and add the current portfolio value as positive on the valuation date.
Is XIRR an annual return?
Yes. XIRR is an annualized money-weighted rate. It is an equivalent yearly rate for the full dated cash-flow schedule, not the actual return earned in each calendar year.
What is a good XIRR?
There is no universal good XIRR. Compare it with a relevant benchmark, inflation, tax, fees, risk and the exact measurement period.
Can XIRR be negative?
Yes. A negative XIRR indicates a timing-adjusted loss. Check all signs, dates and the closing value before relying on the result.
Why does XIRR need positive and negative values?
The equation needs cash paid and cash received to find a rate that balances discounted cash flows. A schedule with only one sign has no conventional XIRR.
What is the difference between XIRR and CAGR?
CAGR uses one beginning value and one ending value. XIRR handles multiple investments and withdrawals on exact dates.
Why might Excel and this calculator show different XIRR values?
Differences may result from data entry, date parsing, rounding, multiple roots or the numerical method and starting guess. Verify the same cash flows, dates and signs in both tools.
Should I include the current portfolio value in XIRR?
Yes, if the investment remains open. Enter the current portfolio value as a positive cash flow on the valuation date so the schedule has a closing value.
Financial disclaimer: This calculator provides educational estimates, not investment, tax, legal, accounting or financial advice. XIRR depends on complete and accurate cash flows, dates and valuations. Past or estimated returns do not guarantee future results.