How to use the XIRR Calculator
- 1
Enter your monthly SIP amount.
- 2
Enter the number of instalments paid so far.
- 3
Enter the current value of the investment from your statement.
- 4
Read the total invested, the gain and the annualised XIRR.
The formula
Find the rate x where Σ Cᵢ ÷ (1 + x)^(dᵢ ÷ 365) = 0Each Cᵢ is a cash flow (instalments are negative, the current value is positive) and dᵢ is the number of days from the first instalment to that cash flow. The calculator assumes one instalment a month, the last one a month ago, and solves for x step by step.
Worked example
Suppose you paid ₹10,000 a month for 60 months, a total of ₹6 lakh, and the investment is worth ₹8.5 lakh today. The gain is ₹2.5 lakh, about 41.7% in absolute terms, but the XIRR works out to roughly 13.9% a year.
Tips
- Take the current value from your latest account statement or CAS for an accurate result.
- If you skipped or changed instalments, the result is approximate, since this calculator assumes equal monthly payments.
- Judge XIRR over at least three to five years; short-period figures can swing widely.
Frequently asked questions
What is XIRR in a SIP?
XIRR is the annualised return on investments made at different dates. In a SIP, each instalment is invested for a different period, so XIRR weighs each one by its time invested. It is the standard way to state SIP returns as a yearly rate.
Why is my SIP XIRR different from the absolute return?
Absolute return is the total gain divided by the total invested, ignoring time. XIRR spreads that gain across the time each rupee was actually invested. Later instalments were invested for a short time, so XIRR is usually higher than the absolute return divided by years.
Is XIRR the same as CAGR?
For a single investment with no further cash flows, XIRR and CAGR give almost the same result. They differ when money goes in or out at several dates. XIRR handles multiple cash flows, so it is the right measure for SIPs, STPs and SWPs.
What is a good XIRR for a SIP?
There is no fixed good number; compare your XIRR with the fund's benchmark and category over the same period. Equity SIP returns swing a lot in the short run and can be negative after a market fall. Looking at longer periods gives a fairer picture.