What is XIRR in mutual funds?
XIRR stands for extended internal rate of return. It is the single annual rate that, applied to every investment and withdrawal from its own date, produces your current value. Because each instalment of a SIP goes in on a different date, XIRR is the standard way to measure SIP returns, and it is what fund statements and portfolio apps usually show.
Take the calculator's starting figures: a ₹10,000 SIP from 5 October 2023 to 5 September 2026, 36 instalments in all, worth ₹4.5 lakh on 9 October 2026. You invested ₹3.6 lakh and gained ₹90,000, an absolute return of 25.0%. The XIRR is 14.9% a year.
XIRR formula
XIRR is the rate r that makes the value of all cash flows, discounted to the first date, add up to zero:
Σ Cᵢ ÷ (1 + r)^(dᵢ ÷ 365) = 0
- Cᵢ is each cash flow: investments negative, withdrawals and the current value positive.
- dᵢ is the number of days between that cash flow and the first one.
There is no direct formula for r, so it is found by trial: the calculator starts from a guess and refines it until the total is zero.
XIRR vs CAGR vs absolute return
- Absolute return is the total gain divided by what you invested: 25.0% in the example. It ignores time.
- CAGR assumes one amount invested on one date. Applied to the example as if the whole ₹3.6 lakh went in on the first day, it gives 7.7%, which understates the return because most instalments were invested much later.
- XIRR allows for when each rupee went in and came out: 14.9% in the example.
For a single lump sum held without changes, CAGR and XIRR are the same. As soon as money goes in or out more than once, use XIRR.
Where to find your dates and amounts
- Your Consolidated Account Statement (CAS) from CAMS or KFintech lists every purchase, SIP instalment and redemption with its date.
- Your fund house or investment platform shows the current value of each holding.
- Enter purchases as investments, redemptions as withdrawals, and today's value as the last row.
XIRR shows what you earned; it does not say whether the fund was a good choice. To check that, compare it with the benchmark over the same period, and look at costs: the mutual fund commission calculator shows what a regular plan's higher expense ratio takes from the same return.
Frequently asked questions
What is XIRR in mutual funds?
XIRR, or extended internal rate of return, is the annual return on investments made at different times. In a SIP each instalment is invested on a different date, so XIRR weighs every rupee by how long it has actually been invested. That makes it the right way to measure SIP returns.
What is the difference between XIRR and CAGR?
CAGR measures the annual growth of a single amount invested on one date. XIRR handles many investments and withdrawals on different dates. For a lump sum held without changes, the two are the same; for a SIP, CAGR on the total invested understates the return because most of the money was invested later.
What is the difference between XIRR and absolute return?
Absolute return is the total gain as a percentage of what you invested, with no allowance for time. A 25% absolute return over one year and over ten years are very different results; XIRR turns the result into an annual rate so you can compare it.
Why is the XIRR of my new SIP so high or so low?
XIRR is an annual rate. Over a few months, a small rise or fall is scaled up to a full year, so it can look extreme. It becomes more meaningful once your investments have run for a year or more.
Can XIRR be negative?
Yes. If the current value and withdrawals add up to less than you invested, XIRR is negative.
How do I calculate XIRR in Excel?
Put the dates in one column and the amounts in another, with investments as negative numbers and withdrawals and the current value as positive numbers. Then use =XIRR(amounts, dates).
What is a good XIRR for a SIP?
There is no single number. Compare your XIRR with the fund's benchmark index and its category over the same dates, and remember that equity returns vary a lot over short periods.
Are the amounts I enter stored?
No. The calculation runs in your browser, and the amounts you enter are not saved or sent to Genvest.
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- Asset Allocation for Indian DIY Investors
- Mutual Fund Portfolio Review
- How to Build a Mutual Fund Portfolio in India
- Direct vs Regular Mutual Funds: India Guide 2026
- AI Portfolio Analysis: Fund Quality, Fee Leaks and Outlook
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