What is XIRR and why is it used for SIP returns?

XIRR (Extended Internal Rate of Return) calculates annualized return when investments happen at irregular intervals. For SIP, each monthly investment happens on different dates, making XIRR more accurate than simple CAGR.

What is a good XIRR for mutual funds in India?

XIRR of 10–12% for equity mutual funds over 5+ years is good. Large-cap funds deliver 10–13% XIRR, mid-cap 12–15%, and small-cap 14–18% over long periods, but with higher volatility.

XIRR Calculator India | FinanceAcademy

📋 Cash Flows

💡 Enter each investment as a negative amount (outflow) and the final redemption as positive (inflow). Date format: YYYY-MM-DD.

DateAmount (₹)

📌 Quick fill: 12 months of ₹10,000 SIP starting Jan 2023, redeemed ₹1,40,000 in Jan 2024.

Your XIRR

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Add cash flows and click Calculate

📖 XIRR vs CAGR vs Absolute

XIRR Best for SIP / irregular flows. Accounts for timing of each cash flow. More accurate than simple CAGR.

CAGR Best for lumpsum. Assumes one investment and one redemption. Misleading for SIP.

Absolute Simple % gain. (Final − Invested) ÷ Invested. Ignores time — useless for comparison.

Check Your Portfolio XIRR

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XIRR Calculator India — Calculate True Mutual Fund & SIP Returns 2025

XIRR (Extended Internal Rate of Return) is the standard method for measuring returns from SIPs and investments with irregular cashflows. When you invest ₹5,000/month for 3 years and your corpus grows to ₹2.5 lakh, your absolute return is 39% — but your XIRR is 18.2% per annum because each instalment has a different time period to grow.

XIRR

Standard measure for SIP & multi-instalment investments

12–15%

Typical long-term XIRR from Nifty 50 index fund SIPs

≠ CAGR

CAGR is for single investments; XIRR is for multiple cashflows

Bisection

Algorithm used to solve the XIRR equation iteratively

📐 Formula & How It Works

XIRR solves: 0 = Σ [Cᵢ / (1 + XIRR)^(dᵢ/365)]

Where Cᵢ = cashflow on date dᵢ (negative for investments, positive for redemption/current value), dᵢ = date of cashflow, XIRR = the annualised return rate that makes NPV = 0. This is solved iteratively using Newton-Raphson or bisection method.

Example: 12 monthly SIPs of ₹10,000 starting Jan 2024. Current value ₹1.45L in Dec 2024. XIRR = 27.8% p.a. (absolute return was only 20.8%).

🛠️ How to Use This Calculator

Step 1: Enter each investment date and amount as negative cashflows (money going out).
Step 2: Enter the current value or redemption date and amount as a positive cashflow (money coming in).
Step 3: Click Calculate — the calculator uses a bisection algorithm to solve for XIRR.
Step 4: Compare your XIRR with benchmark: Nifty 50 historical XIRR over 10+ years is ~12–13%.
Step 5: Use this to compare multiple funds or investment strategies on a like-for-like basis.

💡 Pro Tips

✓ Always use XIRR (not absolute returns) when evaluating SIP performance — fund houses often show misleading point-to-point returns.

✓ A negative XIRR means you've lost money in annualised terms — especially common for 1–2 year SIPs in volatile markets.

✓ XIRR on Zerodha Coin and Groww may differ slightly due to NAV date conventions — our calculation uses exact calendar dates.

✓ Reinvested dividends should be added as negative cashflows (reinvestment date) for accurate XIRR in dividend plans.

✓ Compare your fund's XIRR with its benchmark index XIRR — if you're underperforming index over 5+ years, switch to index funds.

❓ Frequently Asked Questions

What is XIRR and why is it important? +

XIRR (Extended Internal Rate of Return) calculates the annualised return for investments with multiple cash flows at irregular dates — like monthly SIPs. It is a highly accurate performance metric for SIPs and is used by AMFI, mutual fund platforms, and financial advisors.

What is the difference between XIRR and CAGR? +

CAGR assumes a single lump sum investment at the start and measures annualised growth. XIRR handles multiple investments at different dates — each SIP instalment has a different period to compound. For SIPs, XIRR is always more accurate than CAGR.

What is a good XIRR for SIP in India? +

Nifty 50 index funds have delivered 12–14% XIRR on 10+ year SIPs. Midcap funds have delivered 14–18% XIRR. A XIRR above 12% on a 5+ year SIP is excellent. Below 8% over 5+ years suggests underperformance versus FD or PPF.

Why does XIRR differ from the app-reported returns? +

Different platforms calculate XIRR using slightly different date conventions, NAV cut-off times, and whether transaction charges are included. Our calculator uses exact dates and market NAVs for a more accurate result.

Can XIRR be negative? +

Yes. If the current portfolio value is less than total invested amount, XIRR will be negative. This is common in the initial years of a SIP during a market downturn — which is why 5+ year SIP horizons are recommended.

How do I find the XIRR of my mutual fund portfolio? +

Most AMC apps and platforms (Zerodha Coin, Groww, Kuvera) show XIRR in the portfolio section. Alternatively, export your statement from CAMS/KFintech and enter cashflows here for an independent calculation.

XIRRCalculator