What is the XIRR?
XIRR (Extended Internal Rate of Return) is the annualised return that accounts for when each rupee went in. A SIP investor who put in ₹12 lakh over five years has not held all of it for five years — most instalments are much younger — so a simple "total gain %" badly overstates or understates performance.
XIRR is what your mutual fund statement and CAS report show, and it is the only fair way to compare a SIP against a lumpsum or an FD.
Formula & worked example
True XIRR solves for the rate that makes all cash flows net to zero. This calculator uses the equivalent CAGR on the average holding period:
Worked example: ₹12,00,000 invested, now worth ₹18,50,000, average holding 5 years. Absolute return is 54.2%, which sounds huge — but annualised it is 9.05% a year. That is the number to compare against an FD or another fund.
How to use this xirr calculator
- Enter the total amount invested across all instalments.
- Enter the current value from your latest statement.
- For a SIP, the average holding period is roughly half the total duration — a 10-year SIP averages about 5 years.
- Compare the annualised figure, never the absolute one, when judging a fund.
Smart tips
- Absolute return always flatters a long SIP. Annualised return is the honest comparison.
- For an exact XIRR with dated cash flows, use the XIRR() function in Excel or Google Sheets with your transaction list.
- Compare a fund's XIRR against its benchmark over the same period, not against a different period's headline number.
- A fund beating an FD by 2–3% annualised is doing its job; chasing the year's top performer usually is not.
Frequently asked questions
What is the difference between CAGR and XIRR?
CAGR assumes a single investment held for the whole period. XIRR handles multiple investments at different dates, which is why it is the correct measure for SIPs.
What is a good XIRR for a mutual fund?
Over 10+ years, 11–13% is good for diversified equity, 8–10% for hybrid and 6–7% for debt. Judge against the benchmark and the category, not in isolation.
Why is my absolute return much higher than XIRR?
Because most of your SIP money has been invested for far less than the full period. Absolute return divides gain by total invested without regard to time.
Can XIRR be negative?
Yes, when the current value is below the amount invested. Over short periods that is normal for equity funds and not by itself a reason to exit.
Want the theory behind the numbers? Read our returns guides on the Money Blog.