XIRR Calculator
Find the true annualized return of a recurring investment, accounting for the date of every installment.
Total Invested
$600,000
Net Gain / Loss
$250,000
Value at Maturity
$850,000
Value at Maturity
$850,000
XIRR (per year)
13.88%
Time Period
5 yrs 0 mos
60 installments totalling $600,000 that grew to $850,000 earned an annualized return (XIRR) of 13.88%.
Growth at XIRR
Yearly Breakdown
| Year | Total Invested | Net Gain / Loss | Value |
|---|---|---|---|
| 1 | $120,000 | $8,865 | $128,865 |
| 2 | $240,000 | $35,619 | $275,619 |
| 3 | $360,000 | $82,881 | $442,881 |
| 4 | $480,000 | $153,228 | $633,228 |
| 5 | $600,000 | $250,000 | $850,000 |
Frequently Asked Questions
1What is XIRR?
XIRR (Extended Internal Rate of Return) is the single annual rate of return that makes the value of all your investments, each compounded from its own date, equal to what you have at the end. It is the standard way to measure returns on a SIP or any investment made in several installments.
2Why not just use CAGR for a SIP?
CAGR assumes all the money was invested on day one. In a SIP, later installments have been invested for much less time, so CAGR on the total amount understates the real return. XIRR gives each installment credit only for the time it was actually invested.
3How does the annual step-up affect XIRR?
A step-up puts more money in later, when it has less time to grow. For the same maturity value, a larger step-up means more of your money was invested recently, so the XIRR comes out higher.
4Can XIRR be negative?
Yes. If the maturity value is less than the total amount invested, the investment lost money and XIRR shows the annualized rate of that loss.
5Will this match the XIRR shown by my fund house or Excel?
It uses the same method as Excel's XIRR function (actual days between dates, 365-day years). Small differences can appear if your real installments fell on slightly different dates, for example after weekends or holidays.
How the Numbers Are Calculated
Starting from the start date, an installment is placed on every bi-weekly, monthly, quarterly or yearly date before the maturity date. Each installment is increased by the step-up percentage once for every full year that has passed since the start date. The maturity value is treated as a single amount received on the maturity date.
XIRR is the annual rate r at which all these dated cash flows net to zero. It is found numerically: because every investment comes before the single maturity value, there is exactly one such rate, and the calculator narrows in on it by bisection. The chart and table then show what the installments made so far would be worth at the end of each year, growing at that rate.
Installment in year y
Pᵧ = P × (1 + s)^y
XIRR condition
Σ CFᵢ / (1 + r)^((dᵢ − d₀) / 365) = 0
Net gain / loss
Net Gain = Maturity Value − Σ Installments
- P = recurring investment, s = annual step-up, y = full years since the start date, CFᵢ = cash flow on date dᵢ (installments negative, maturity value positive), d₀ = start date.
- Days are counted as actual calendar days and a year is 365 days, the same convention as Excel's XIRR.
- All figures are rounded only at the point they are displayed.