What is XIRR Calculator?
The XIRR Calculator computes the Extended Internal Rate of Return for a series of cash flows that occur at irregular intervals. Unlike simple return calculations, XIRR accounts for the exact timing of each investment and redemption, giving you the true annualized return rate.
Why Use XIRR Calculator?
Standard returns calculations assume equal intervals between cash flows, which is rarely the case with real investments. XIRR handles multiple SIPs, partial withdrawals, and lump sum additions at different dates, providing an accurate picture of your investment performance.
How to Use
Add your cash flows with dates and amounts. Use negative amounts for investments (money going out) and positive amounts for redemptions (money coming in). The calculator uses the Newton-Raphson method to compute the XIRR.
Example Usage
You invested ₹1,00,000 on Jan 1, 2024, and received ₹1,15,000 on Jan 1, 2025. The XIRR would be 15%, reflecting a true 15% annualized return.
Benefits
Get the true annualized return on investments with irregular cash flows. Essential for evaluating mutual fund SIP performance. Handles multiple buy and sell transactions.