What XIRR tells you
XIRR (extended internal rate of return) is the yearly return on money that goes in and out on different dates, such as a SIP, top-ups and withdrawals. It answers: what interest rate would a bank deposit need to pay to turn the same deposits, made on the same dates, into the money you have now? Mutual fund statements and the Welthr portfolio show the same number.
Why XIRR is different from your absolute return
Absolute return is simply gain ÷ amount invested, and ignores time. In a SIP, the last instalment has been invested for only a month, so on average the money was invested for about half the period. Example: ₹5,000 a month for 12 months (₹60,000) worth ₹64,000 a month after the last instalment is a 6.7% absolute return but an XIRR of about 12.5% a year.
How to use the calculator
- Add a row for each amount you invested (SIP instalments, lump sums, top-ups) with its date.
- Add withdrawals and redemptions as "Withdrew".
- Enter what the investment is worth now, and today's date.
Have the transactions in a spreadsheet? Copy the date and amount columns and paste them. As in Excel's XIRR function, negative amounts are money you put in and positive amounts money you got back. Dates can be day-month-year (05/04/2024), 05-Apr-2024 or 2024-04-05.
When XIRR can't be calculated
- There must be money going in and money coming back (a withdrawal or the current value).
- The cash flows need at least two different dates.
- Over a few days or weeks a yearly rate swings wildly, so treat XIRR over less than a month with care.
For a single lump sum with nothing added or taken out, XIRR equals CAGR: use the CAGR calculator. To see what a regular SIP could grow to, try the SIP calculator.
Results are estimates for illustration only, not financial advice. Banks and schemes may round, apply TDS or use slightly different day counts — confirm figures with your bank or employer. Written by the Welthr team; last reviewed on .