What is XIRR?
XIRR measures an annualised return when cash flows occur on different dates. Unlike a simple percentage gain, it accounts for the timing of each investment and withdrawal.
How to use this XIRR calculator
Enter the amount invested, investment date, current value and valuation date. The calculator estimates an annualised XIRR for that investment period. For a SIP or a portfolio with many cash flows, use the full FolioTrack portfolio tracker.
When should you use XIRR?
- Mutual fund SIPs with monthly investments
- Portfolios with multiple purchases at different prices and dates
- Investments with withdrawals or partial redemptions
XIRR for SIPs and mutual funds
XIRR is useful when your investment cash flows happen on different dates. That makes it especially useful for monthly SIPs, additional mutual fund purchases, partial withdrawals and other irregular investment cash flows.
Frequently asked questions
Is XIRR better than absolute return?
They answer different questions. Absolute return shows the gain or loss, while XIRR annualises the result and accounts for the timing of cash flows.
Can I use XIRR for a SIP?
Yes. Each SIP instalment has its own date, so XIRR is commonly used to estimate the annualised return of SIP investments.
What if I have many transactions?
Use the PetalFolio Investment Tracker to keep the transaction history and portfolio performance together.