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Home/Finance Tools/XIRR Calculator

XIRR Calculator

Home › Finance Tools › XIRR Calculator

Extended Internal Rate of Return (XIRR) Calculator

Calculate the annualized rate of return for a schedule of irregular cash flows (investments and returns on arbitrary dates). Supports custom currencies, presets, and interactive cash flow graphing.

DateAmount (+ for Return, – for Investment)
Extended Rate of Return (XIRR)
—

Enter your cash flows on the left and click calculate.

*Results are estimates based on input parameters. This is not financial advice.
Total Capital Invested: —
Total Value Realized: —
Net Capital Gain/Loss: —
Days Under Investment: —
Cash Flow Timeline

Understanding XIRR (Extended Internal Rate of Return)

Unlike standard Internal Rate of Return (IRR) which assumes that cash flows occur at equal time intervals (monthly, yearly), XIRR accommodates transactions occurring on completely arbitrary dates. It is the industry standard for calculating annualized rates of return on mutual fund SIP portfolios, stock trading schedules, and personal portfolios containing random capital additions and withdrawals.

The Mathematical Formula

The XIRR solver calculates the annualized interest rate r for which the Net Present Value (NPV) of all cash flows equals zero:

∑i=1N [ Ci / (1 + r)(di – d1) / 365 ] = 0

Where:

  • Ci = The transaction amount of the i-th cash flow (Negative for outflows/investments, Positive for inflows/returns).
  • di = The date of the i-th cash flow.
  • d1 = The date of the first cash flow (the starting reference point).
  • r = The annualized Extended Internal Rate of Return (XIRR).

Worked Example

Scenario: Simple SIP Return

DateTransactionAmount ($)Description
2025-01-01Outflow (-)-10,000Initial Purchase of Mutual Fund units.
2025-06-01Outflow (-)-5,000Secondary SIP addition.
2026-01-01Inflow (+)+18,000Selling all units at final portfolio evaluation.

Using our numerical engine, the equation resolves to (r = 23.36%). This means your irregular investments grew at a compounded equivalent rate of **23.36% per annum**.

Frequently Asked Questions (FAQ)

Q: Why does my XIRR calculation return an error or fail to converge? A: XIRR cannot be computed if all transactions are positive or all are negative. You must have at least one negative transaction (capital outflow/purchase) and one positive transaction (capital inflow/sale or remaining portfolio valuation).
Q: What is the difference between XIRR and CAGR? A: CAGR (Compound Annual Growth Rate) handles only a single initial investment and a single final value over a set amount of time. XIRR is an extension of CAGR that handles multiple irregular investment additions and partial withdrawals.
Q: Does XIRR include inflation or taxes? A: No. By default, XIRR only measures absolute monetary compound returns. To compute inflation-adjusted real returns, the rates must be deflated by the CPI rate separately.
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