XIRR formula
Σ CFᵢ ÷ (1 + XIRR)^((dᵢ − d₀) ÷ 365) = 0CFᵢ is each cash flow, dᵢ its date and d₀ the first date. There is no closed-form solution, so the calculator searches for the rate that makes the sum zero.
Worked example
You invested ₹50,000 on 1 Jan 2023, another ₹30,000 on 1 Jan 2024, and the holding is worth ₹1,05,000 on 1 Jan 2025. You put in ₹80,000 and gained ₹25,000, a 31.25% absolute return. Because the second ₹30,000 was invested for only one year, the XIRR is about 18% a year.
Frequently asked questions
What is XIRR?
XIRR (extended internal rate of return) is the annualised return of a series of cash flows on different dates. It is the rate that makes the present value of all your investments and withdrawals add up to zero.
How do I enter cash flows?
Enter money you invested as a negative amount and money you received (redemptions, dividends, or today’s value of the holding) as a positive amount, each with its date.
Why is my XIRR different from the fund’s return?
A fund’s published return assumes a single investment at the start. Your XIRR reflects when you actually invested, so investing more before a rally gives a higher XIRR than the fund’s return, and vice versa.
Is this the same as Excel’s XIRR?
Yes, it uses the same definition: actual days between dates divided by 365.
Results are estimates for educational purposes only and are not investment, tax or financial advice. Verify figures with your broker or advisor before acting on them.