XIRR Calculator
XIRR stands for Extended Internal Rate of Return. It is an important metric that helps you estimate the actual rate of return from the multiple transactions of your market-linked investments occurring at different times. Read more to learn how to use the XIRR Return Calculator and how it works.
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What is XIRR and its Meaning in Mutual Funds?
- XIRR Calculator
SIP Calculator
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What is XIRR?
The full form of XIRR is the Extended Internal Rate of Return. It is a way to calculate the annual return on an investment that has multiple cash flows occurring at different times.
The XIRR returns consider the specific timing of each transaction. This makes it a more accurate measure of investment performance in real-world scenarios.
This method is generally used to calculate the returns on Systematic Investment Plans (SIP), when you invest or redeem different amounts over different periods from your investment plans like mutual fund schemes and Unit Linked Insurance Plans (ULIP Plans).
NOTE: A higher XIRR shows a better investment performance. However, other factors, such as risk and volatility, should also be considered.
- Insurance Companies
- Mutual Funds
| Returns | ||||
|---|---|---|---|---|
| Fund Name | 5 Years | 7 Years | 10 Years | |
| High Growth Fund Max Life | 25.26% | 18.33% |
16.32%
View Plan
|
|
| Top 200 Fund Tata AIA | 24.09% | 19.7% |
16.5%
View Plan
|
|
| Accelerator Mid-Cap Fund II Bajaj Allianz | 17.79% | 10.57% |
12.92%
View Plan
|
|
| Opportunities Fund HDFC Standard | 17.95% | 12.28% |
13.22%
View Plan
|
|
| Equity II Fund Canara HSBC Oriental Bank | 11.98% | 9.08% |
8.43%
View Plan
|
|
| Grow Money Plus Fund Bharti AXA | 16.16% | 13.1% |
12.7%
View Plan
|
|
| Multiplier Birla Sun Life | 18.53% | 11.28% |
13.86%
View Plan
|
|
| Equity Top 250 Fund Edelwiess Tokio | 14.41% | 10.75% |
10.64%
View Plan
|
|
| Opportunities Fund ICICI Prudential | 16.22% | 11.77% |
10.88%
View Plan
|
|
| Flexi Growth Fund LIC | - | - |
-
View Plan
|
|
Updated as of Jan 2025
| Returns | ||||
|---|---|---|---|---|
| Fund Name | 3 Years | 5 Years | 10 Years | |
| Active Fund QUANT | 24.92% | 31.48% |
21.87%
|
|
| Flexi Cap Fund PARAG PARIKH | 20.69% | 26.41% |
19.28%
|
|
| Large and Mid-Cap Fund EDELWEISS | 22.34% | 24.29% |
17.94%
|
|
| Equity Opportunities Fund KOTAK | 24.64% | 25.01% |
19.45%
|
|
| Large and Midcap Fund MIRAE ASSET | 19.74% | 24.32% |
22.50%
|
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| Flexi Cap Fund PGIM INDIA | 14.75% | 23.39% |
-
|
|
| Flexi Cap Fund DSP | 18.41% | 22.33% |
16.91%
|
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| Emerging Equities Fund CANARA ROBECO | 20.05% | 21.80% |
15.92%
|
|
| Focused fund SUNDARAM | 18.27% | 18.22% |
16.55%
|
|
Updated as of Dec 2024
What is the XIRR Calculator?
An XIRR calculator helps you to calculate the Extended Internal Rate of Return (XIRR) for a series of varying cash flows in a SIP investment plan. This calculator finds a single rate of return which can be applied to each of your investments or withdrawals to give the current value of your total investment.
How to Calculate XIRR?
You can calculate the XIRR for your SIP investments using the XIRR function available in Microsoft Excel.
XIRR Formula in Excel:
The calculation formula for the XIRR Calculator online is as follows:
Extended Internal Rate of Return = XIRR (value, dates, guess)
Where,
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values: A range of values representing the cash flows.
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dates: A range of dates corresponding to the cash flows.
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Guess*: An optional parameter that provides an initial guess for the XIRR.
*If omitted, Excel will use a default value of 0.1 (10%).
Steps to Use XIRR Calculator in Excel
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Step 1: Add the date entries for the following in the cells of the “Date” column-
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Outflows (investments/ purchases) and
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Inflows (redemption/ returns)
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Step 2: In the next column, list all the transactions in front of the particular date entry. Mark entries as per the following-
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Mark outflow entries as negative (-)
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Mark inflow entries as positive (+)
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Step 3: In the last row, enter the current value of your total holdings and the current date.
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Step 4: Use the XIRR function in Excel: =XIRR(values, dates, [guess])
Illustration of XIRR Calculation:
Let us take an example with investments in an SIP plan for 10 months as the following transactions:
| Date | SIP Amount |
| 01/02/2023 | -20000 |
| 02/02/2023 | -500 |
| 03/10/2023 | -300 |
| 04/02/2023 | 10000 |
| 05/17/2023 | 27000 |
| 06/05/2023 | 105 |
| 07/08/2023 | -500 |
| 08/01/2023 | 10000 |
| 09/10/2023 | 4500 |
| 10/14/2023 | -1000 |
| XIRR = | 8.826828074 |
For the above cash flows, the XIRR is 19.36% p.a. This annual rate of return is generated by considering the period of particular investments for different transactions.
Calculation Formula for XIRR Calculator in a SIP
XIRR is calculated by solving for the rate of return for all the cash flows. The in-built calculation formula used in Excel is mentioned below:
Benefits of XIRR Calculator
The following list mentions the key advantages of using an XIRR Calculator online:
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The XIRR provides accurate performance of your SIP investments while considering the different transactions at different time intervals.
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It is the most suitable annual return rate calculator for irregular cash flows.
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Provides an annual rate of return to easily compare with other investment options.
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Helps you to make an informed decision making for your future financial goals.
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It is a fast and hassle-free way to automatically calculate your XIRR returns.
Conclusion
The XIRR calculator is a valuable financial tool that helps you to accurately assess the performance of your irregular investments in your SIP plan. This calculator simplifies complex calculations and contributes to more effective financial planning.
FAQs
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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])
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values: A range of values representing the cash flows.
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dates: A range of dates corresponding to the cash flows.
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guess: An optional parameter that provides an initial guess for the XIRR.
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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. -
How is XIRR calculated?
The XIRR is generally calculated using a spreadsheet software like MS Excel. You can calculate your annual rate of return by inserting the cash flows for their respective dates and applying the formula: ‘=XIRR(values, dates, [guess])’. -
What is a good XIRR rate?
A good XIRR rate for different types of investments are given below:-
Equity investments: a good XIRR ranges between 12 – 15% p.a.
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Debt investments: a good XIRR ranges from 6 – 10% p.a.
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Is XIRR equal to CAGR?
No, XIRR is not equal to CAGR, although both these are a measure of investment performance. While CAGR provides a smoothed annual growth rate assuming consistent growth, XIRR provides a more precise annualized return by considering the actual dates and amounts of cash flows.
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^Section 80C allows annual deductions of up to ₹1.5 lacs from the taxable income. Section 10(10D) provides tax-free maturity benefits for investments of up to ₹2.5 Lacs/ year, on policies bought after 1 Feb 2021. Tax benefits and savings are subject to changes in tax laws.
¶Long-term capital gains (LTCG) tax (12.5%) is exempted on annual premiums up to 2.5 lacs.
^^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.
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