Calculate annualized returns for SIPs and investments with date-wise cash flows.
Investment frequency
XIRR
59.35%
Absolute return
122.22%
Absolute return shows total gain or loss. XIRR shows annualized return after considering the timing of each investment. XIRR is useful when investments happen across multiple dates, such as SIPs or irregular investments.
XIRR stands for Extended Internal Rate of Return. It calculates the annualized return of investments where multiple cash flows happen on different dates.
For example, if you invest ₹10,000 every month through SIP and after 3 years your investment value becomes ₹8,00,000, XIRR helps you understand the yearly return after considering every investment date — not just the total gain.
Most real-life investments do not happen in one transaction. You may invest through:
When money goes in or comes out on different dates, XIRR gives a better return picture than simple absolute return. Earning ₹1 lakh on ₹5 lakh over 1 year is very different from earning ₹1 lakh over 5 years.
| Metric | What it shows |
|---|---|
| Absolute Return | Total gain or loss on investment |
| XIRR | Annualized return based on date-wise cash flows |
If you invested ₹3,60,000 and your maturity value is ₹8,00,000, estimated returns are ₹4,40,000 — that is the absolute return. XIRR goes further and tells you the yearly rate of return after considering that ₹3,60,000 was invested gradually over time.
Use XIRR when your investment has multiple transactions on different dates, such as:
XIRR should be seen alongside investment duration, risk level, market conditions, and your financial goal. It shows past performance based on entered cash flows — it does not guarantee future returns.
For XIRR, each investment is a negative cash flow and maturity/current value is a positive cash flow. XIRR is the rate where the present value of all cash flows equals zero:
Σ [ CFi ÷ (1 + r)((Datei − Date0) ÷ 365) ] = 0
Final output: XIRR % = r × 100