XIRR Calculator

Extended Internal Rate of Return (XIRR) is a key metric used in calculating return on investments. The XIRR Calculator provides a precise way to determine the annualised return rate when you have multiple cash flow transactions in different time periods. It helps you accurately and efficiently analyse the true profitability of your investments and provides a better picture of your financial performance over time. Here, we will explain how to use the XIRR Return Calculator and how it works.

Read more
Best SIPs
  • Guaranteed Tax Savings

    Guaranteed Tax Savings

    Under sec 80C & 10(10D)^
  • savings

    ₹1 Crore

    Invest ₹10k Per Month*
  • Zero LTCG Tax

    Zero LTCG Tax

    Unlike 10% in Mutual Funds
Top Performing SIP's with High Returns*
Invest ₹10k/month & Get ₹1 Cr Tax free*
+91
Secure
We don't spam
View Plans
Please wait. We Are Processing..
Your personal information is secure with us
Plans available only for people of Indian origin By clicking on "View Plans" you agree to our Privacy Policy and Terms of use #For a 55 year on investment of 20Lacs #Discount offered by insurance company
Get Updates on WhatsApp
We are rated~
rating
6.7 Crore
Registered Consumers
51
Insurance Partners
3.4 Crore
Policies Sold
XIRR Calculator
  • Monthly
  • Yearly
/month
Enter Monthly Investment
Enter Invest for
Enter Invested for
/Year
Enter ROI
Total Investment
Maturity Amount
PROJECTED GAINS
Top Funds with High Returns (Past 7 Years)
Whole Life Mid Cap Equity Fund
21.73%
Whole Life Mid Cap Equity Fund
Midcap Fund
19.88%
Midcap Fund
High Growth Fund
19.48%
High Growth Fund
Multiplier
19.4%
Multiplier
Accelerator Mid-Cap Fund II
18.72%
Accelerator Mid-Cap Fund II
Opportunities Fund
18.2%
Opportunities Fund
Classic Opportunities Fund
15.71%
Classic Opportunities Fund
Flexi Cap
14.57%
Flexi Cap
Opportunity Fund
14.52%
Opportunity Fund
Save N Grow Money Fund
11.34%
Save N Grow Money Fund

What is XIRR?

XIRR stands for Extended Internal Rate of Return. It is a financial method that is used to calculate the annualised rate of return on a series of cash flow transactions when those cash flows occur at irregular intervals.

The XIRR considers the specific timing of each cash flow, which makes it a more accurate measure of investment performance in real-world scenarios.

This method is generally used to calculate the returns on SIP-Systematic Investment Plans, where you make a small amount of regular investments over a long-term period in Unit Linked Insurance Plans (ULIP Plans) or mutual fund^^ schemes.

NOTE: A higher XIRR indicates a better investment performance. However, other factors, such as risk and volatility, should also be considered.

What is the XIRR Calculator?

An XIRR calculator is an online financial tool that calculates the Extended Internal Rate of Return (XIRR) of an investment or a series of cash flows. XIRR is a method for calculating the return on an investment where there are multiple cash flows happening at different times.

An XIRR Calculator for SIP is an easy-to-use online tool that requires the following information:

  • The investment amount of each cash flow

  • The expected maturity amount

  • The time period of investments

The calculator will then calculate the XIRR of the investment, which can be used to track performance and compare the returns of different investments.

This tool is particularly useful for evaluating the performance of investments, such as stocks, bonds, or real estate, where cash flows are not evenly distributed over time. This makes it a valuable tool for financial decision-making.

Steps to Use XIRR Calculator

Follow the steps mentioned below to learn the use of an XIRR Calculator:

Step 1: Enter the Cash Flow Details

Enter the dates and corresponding cash flows (investments and returns) into the XIRR calculator.

Step 2: Set Guess Value

Provide an initial guess value for the XIRR calculation. This helps the XIRR Calculator for SIP to converge to the correct result.

Step 3: Calculate XIRR

Click the "Calculate" or "XIRR" button to perform the calculation.

Step 4: View Results

The calculator will display the XIRR rate, which represents the annualised rate of return for your cash flows.

  • Insurance Companies
  • Mutual Funds
Returns
Fund Name 3 Years 5 Years 10 Years
Top 200 Fund Tata AIA 25.66% 26.02%
20.79%
View Plan
Virtue II PNB Metlife 23.49% 22.33%
18.63%
View Plan
Pure Equity Birla Sun Life 22.3% 18.7%
17.8%
View Plan
Growth Opportunities Plus Fund Bharti AXA 18.94% 18.01%
17.24%
View Plan
Pure Stock Fund Bajaj Allianz 18.12% 16.9%
17.02%
View Plan
Equity Top 250 Fund Edelwiess Tokio 16.71% 15.06%
15.12%
View Plan
Blue Chip Fund HDFC Standard 14.94% 13.97%
14.3%
View Plan
Growth Super Fund Max Life 15.36% 14.48%
14.09%
View Plan
Multi Cap Growth Fund ICICI Prudential 16.25% 12.92%
13.6%
View Plan
Equity Fund SBI 15.62% 13.94%
13.51%
View Plan

Updated as on January 2024

Compare more funds
Returns
Fund Name 3 Years 5 Years 10 Years
Large Cap Fund Nippon India 29.45% 15.33%
17.04%
Bluechip Fund SBI 22.34% 14.79%
15.74%
Cap Fund Edelweiss Large 20.14% 14.01%
14.37%
Frontline Equity Fund Aditya Birla Sun Life 21.57% 13.35%
14.61%
Bluechip Fund ICICI Prudential 24.00% 14.36%
15.43%
Large Cap Fund Mirae Asset 18.65% 13.49%
16.93%
Bluechip Equity Fund Canara Robeco 18.57% 15.24%
14.42%
Bluechip Growth Kotak 19.78% 14.55%
14.76%
Large Cap Fund Baroda BNP Paribas 19.37% 15.09%
14.67%

Updated as on January 2024

Compare more funds

Calculation Formula for XIRR SIP Calculator 

XIRR is calculated by solving for the rate of return that makes the net present value (NPV) of cash flows equal to zero. The calculation formula is mentioned below:

NPV = ?[Ct / (1 + r)^(t)] = 0

Where:

  • Ct = Cash flow at time t

  • r = XIRR rate (the rate we want to find)

  • t = Time period

Illustration to Calculate XIRR Online:

Suppose you invested Rs. 1,000 on January 1, 2023, and received returns as follows:

  • On April 1, 2023, you received Rs. 100 as returns

  • On July 1, 2023, you received Rs. 200 as returns

  • On October 1, 2023, you received Rs. 300 as returns

  • On January 1, 2024, you received Rs. 400 as returns

To calculate XIRR for this investment, use the formula to find the rate (r) that makes the NPV of these cash flows equal to zero. In this example, the XIRR would be approximately 31.55%, indicating the annualised rate of return for your investment.

Formula for XIRR Calculator in MS Excel

The calculation formula for the XIRR Calculator online is as follows:

XIRR (values, dates, [guess])

Where,

  • values: A range of values representing the cash flows.

  • dates: A range of dates corresponding to the cash flows.

  • Guess*: An optional parameter that provides an initial guess for the XIRR.

*If omitted, Excel will use a default value of 0.1 (10%).

Illustration to Calculate XIRR in MS Excel:

Let us assume the following cash flows:

  • values = [-10000, 12000]

  • dates = ['2023-01-01', '2023-12-31']

  • To Calculate the XIRR:

    • xirr = XIRR(values, dates)

  • To Print the XIRR:

    • print(xirr)

  • Output Value: 20.00% 

Benefits of XIRR Calculator

The following list mentions the key advantages of using an XIRR Calculator online:

  • Accurate Investment Evaluation: XIRR Calculator for SIP provides a precise measure of an investment's performance, considering the timing and amount of cash flows. This leads to more accurate evaluations.

  • Handles Irregular Cash Flows: It can handle investments with irregular cash flows. This makes an XIRR SIP Calculator suitable for various financial scenarios, including real estate, loans, or retirement savings.

  • Comparative Analysis: The XIRR Calculator for SIP helps compare the returns of multiple investment options. This aids in better decision-making when choosing between alternatives.

  • Annualised Return: XIRR Calculator expresses returns as an annualised rate. It allows for easy comparison with other investment plans or benchmark rates like FD interest rates or inflation.

  • Adjustable Inputs: You can adjust cash flow amounts or guess values to fine-tune calculations. This ensures more realistic and personalised results with the XIRR return calculator.

  • Financial Planning: It is useful to calculate XIRR online for financial planning, retirement planning, and goal setting by estimating future returns from best SIP plans.

  • Portfolio Management: It is essential to use the XIRR calculator online to manage investment portfolios and assess the overall performance of a diverse range of assets.

  • Risk Assessment: An XIRR SIP calculator helps you assess the risk associated with an investment by considering the volatility of cash flows and their impact on returns.

  • Investment Monitoring: The XIRR return calculator enables you to monitor the investment performance, which helps in making timely adjustments to your investment strategies

  • Time-Saving: Automates complex calculations, saving time and reducing the likelihood of human errors in manual calculations.

Summing It Up

The XIRR calculator is a valuable financial tool that enables you to make informed investment decisions. Its ability to accurately assess the performance of investments, handle irregular cash flows, and provide annualised returns makes it an indispensable asset for financial planning, portfolio management, and risk assessment. With its time-saving capabilities and versatility, the XIRR calculator simplifies complex calculations and contributes to more effective financial management.

FAQ's

  • What does 10% XIRR mean?

    A 10% XIRR means that an investment has returned 10% per year, on average, over a specified period of time, taking into account the timing of cash flows.
  • Is 20% XIRR good?

    A 20% XIRR is considered to be a very good return for most investments. It is important to note that past performance is not indicative of future results, but a 20% XIRR over a sustained period of time would be very impressive.
  • What is the formula for calculating XIRR?

    The formula for calculating XIRR is as follows:

    XIRR(values, dates, [guess])

    • values: A range of values representing the cash flows.

    • dates: A range of dates corresponding to the cash flows.

    • guess: An optional parameter that provides an initial guess for the XIRR. 

  • What is XIRR in the SIP calculator?

    XIRR in the SIP calculator stands for Extended Internal Rate of Return. The XIRR function in the SIP calculator will take into account the timing of your investments and the actual returns you earned on each investment, and it will give you a more accurate estimate of your overall return on investment.

*All savings are provided by the insurer as per the IRDAI approved insurance plan.
*Tax benefit is subject to changes in tax laws. Standard T&C Apply
~Source - Google Review Rating available on:- http://bit.ly/3J20bXZ
^10(10D) Tax benefit are for Investments made up to Rs.2.5 L/ yr and are subject to change as per tax laws.
^^The information relating to mutual funds presented in this article is for educational purpose only and is not meant for sale. Investment is subject to market risks and the risk is borne by the investor. Please consult your financial advisor before planning your investments.

Invest in SIP plans
starting ₹1,000/month

and Grow your wealth to meet
to your financial goals

invest in sip
View plans
Standard T & C Apply*

SIP plans articles

Recent Articles
Popular Articles
Why You Should Not Cancel Your SIP Within a Short-Term?

05 Apr 2024

Systematic Investment Plans (SIPs) have become a popular
Read more
Benefits of One - Time Mandate For SIP Investment

26 Mar 2024

One Time Mandate (OTM) for SIP investments make things easier by
Read more
ELSS vs SIP

26 Mar 2024

Differentiating between ELSS and SIP can be challenging because
Read more
How to Redeem ELSS SIP?

26 Mar 2024

Redeeming Equity Linked Savings Scheme SIPs require a clear
Read more
SIP Day

22 Mar 2024

SIP Day refers to the chosen date on which an investor makes
Read more
Best SIP Plans for 15 Years
Systematic Investment Plans are the new emerging investment options in India gaining huge popularity these days
Read more
LIC SIP Calculator
Life Insurance Corporation of India (LIC) is one of the highly-trusted asset management companies (AMCs) in
Read more

top
Close
Download the Policybazaar app
to manage all your insurance needs.
INSTALL