XIRR Calculator - Calculate Extended Internal Rate of Return

XIRR (Extended Internal Rate of Return) calculates the annualized return rate for investments with irregular cash flows. It considers the exact timing and amount of each investment, making it perfect for SIP calculations where investments happen at different dates.

CAGR assumes a single lump-sum investment and constant growth rate, while XIRR handles multiple investments at different times and amounts. XIRR is more accurate for SIP investments as it considers the timing of each cash flow, providing a true annualized return.

For equity SIP investments in India, an XIRR of 12-15% is considered good. For debt investments, 6-8% XIRR is reasonable. However, this depends on market conditions, investment duration, and the specific mutual fund's performance.

Create two columns: dates and cash flows. Enter investment amounts as negative values and current value as positive. Use the formula =XIRR(cash_flows, dates) in Excel. This function will automatically calculate the XIRR percentage for your SIP investments.

Yes, you should include all cash flows including dividends received as positive cash flows on their respective dates for accurate XIRR calculation. This gives you the complete picture of your investment returns including dividend income.

Yes, XIRR can be negative if your current investment value is less than the total amount invested. This indicates a loss in your investment portfolio. Negative XIRR shows the annual rate of loss rather than gain.

Absolute returns show total percentage gain without considering time or investment timing. XIRR gives annualized returns considering the exact timing of each investment, making it more accurate for SIP investments where money is invested over time.

You can calculate XIRR monthly or quarterly to track your investment performance. However, XIRR is most meaningful for investments held for at least 1-2 years as it provides better insights into annualized performance over longer periods.