insights

XIRR / Annualized Return Calculator

Calculate CAGR and absolute returns on your investments over any time period

edit_calendar Last updated: Jul 22, 2026 | verified Reviewed by Calkulator Team | timer 2 min read
Investment illustration
Investment

Measure the true annualized return on any investment

XIRR converts any holding period return to an annualized rate, making it easy to compare investments of different durations. A 60% absolute return over 4 years is 12.47% CAGR — less impressive than it sounds at first glance.

tips_and_updates Compare your XIRR against Nifty 50 CAGR for the same period — if your fund underperforms the index, consider switching.
Investment Details
Initial Investment
≈ 1 Lakh
Current Value
≈ 1.6 Lakh
Duration (Days)
days
≈ 4 yrs 1 day

Return Formulae

CAGR = ((Current / Invested) ^ (365 / days) − 1) × 100

Absolute = (Current − Invested) / Invested × 100

Annualized Return (CAGR)
12.47% p.a.
Absolute Return
+60.00%
Profit on investment
Initial Investment
₹1,00,000
Amount invested
Current Value
₹1,60,000
Present market value
Profit / Loss
+₹60,000
Total profit earned
Duration
4 yrs 1 day
Holding period
Investment Performance Summary
insights
Live Result Illustration
Visual summary — updates instantly as you enter values above
LIVE
Investment Growth Summary Enter values above to update Invested ₹18 L Amount Total Corpus ₹50.5 L Maturity Total Gains ₹32.5 L Returns on Investment +180% Start early — 5 extra years can nearly double your corpus through the power of compounding.
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Real-Life Guide to Using the XIRR Calculator

Actual return on irregular cashflows. Use the examples and checks below to turn the number into a practical decision.

When this calculator is useful

Built for situations with multiple investments and withdrawals on different dates — like a SIP that also received a lumpsum top-up, or a stock/property bought and sold on specific dates — where a simple CAGR calculation cannot capture the actual annualised return.

For most people, the best way to use the XIRR Calculator is to try the real case first, then change one input at a time. That makes the trade-off visible. For example, with a loan calculator you can change tenure while keeping the same rate; with an investment calculator you can change return assumption while keeping the same monthly contribution; with a health, education or measurement calculator you can check how much one input changes the final category.

The result should answer a practical question: Can I afford this? How much should I save? Is this score enough? Is this measurement within range? What is the safer or cheaper option? If the output does not answer the decision clearly, adjust the inputs until the scenario matches your real situation.

lightbulb Real-Life Example
Lumpsum bought and redeemed on exact dates: An investor puts ₹2,00,000 into a mutual fund on 1 January 2023 and redeems the full amount for ₹3,00,000 on 1 January 2026, exactly three years later.
1XIRR solves (3,00,000/2,00,000)^(365/1096) – 1, which works out to approximately 14.5% per annum — noticeably lower than the 50% absolute return the ₹1,00,000 gain might suggest at first glance, precisely because that gain took three full years to accumulate.
2Now change one input, such as rate, time, quantity, unit or score, and compare the new result with the first one.
A large-looking absolute gain can still translate into a modest annualised return once the actual time taken is factored in, which is exactly the gap XIRR is designed to expose.

Practical Advice

Use the XIRR Calculator as a planning tool, not just a number generator. Write down the inputs you used, because the final answer is meaningful only when you remember the assumptions behind it.

If the decision affects money, health, tax, safety, academics or legal compliance, keep a second check ready. That second check may be a bank quote, payslip, official rule, prescription, site measurement, mark sheet or invoice.

Common Mistakes

  • Trying to average simple returns from each individual investment instead of letting the calculator solve for one internal rate that accounts for exact dates and amounts.
  • Entering cash flow dates approximately (e.g. "January" instead of the exact transaction date), which can shift the computed XIRR noticeably when investments are close together in time.
  • Forgetting to include the final redemption or current value as a cash flow at all, which leaves the calculator unable to solve for a meaningful rate.
  • Comparing XIRR directly to a bank FD rate without remembering that XIRR on equity investments is calculated in hindsight, not a forward-looking guarantee like FD interest.
  • Assuming XIRR and absolute return are the same thing — a fund that returned 30% absolute over 4 years has a much lower XIRR than a 30% return earned in a single year.

How to Interpret Results

The single percentage XIRR gives you is the annualised return actually earned across all the irregular cash flows combined — use it to fairly compare this investment against another investment or FD only after confirming both are being measured over comparable time frames.

A good interpretation looks at both the main result and the supporting values. If a page shows totals, ratios, categories, schedules or warnings, read those together instead of focusing only on the biggest number.

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XIRR Calculator FAQs

Useful answers for interpreting the output, avoiding mistakes and using the result responsibly.

What is XIRR and how is it different from a normal return percentage?
XIRR (Extended Internal Rate of Return) is the single annualised rate of return that makes the net present value of all your cash flows — investments as negative amounts, redemptions as positive amounts, each on its actual date — equal to zero, which lets it fairly handle money going in and out on irregular dates.
How does the calculator actually solve for XIRR — is there a simple formula?
Unlike CAGR, XIRR has no direct algebraic formula when there are more than two cash flows; the calculator uses an iterative method (similar to Excel's XIRR function) that tries successive rate guesses until the discounted sum of all cash flows lands at zero.
Why does my mutual fund app show a different XIRR than what I calculate here?
Small differences usually come from exactly which transactions are included — dividend reinvestments, STP/SIP top-ups, or partial redemptions each count as separate cash flows, and missing even one date in your manual entry will shift the computed rate.
Can XIRR be negative?
Yes, if the current or redemption value is lower than what you invested, the calculator will return a negative XIRR, indicating an annualised loss rather than a gain over the period.
Is XIRR the same as the "return" mutual funds report on fact sheets?
Not always — fund fact sheets often show CAGR or trailing point-to-point returns for a lumpsum, while XIRR is specifically needed when you have multiple SIP instalments or top-ups, since a single CAGR figure cannot correctly represent several different investment dates.
Does XIRR account for taxes on the gains?
No, the XIRR figure is calculated on the pre-tax cash flows you enter; if you want a post-tax picture, subtract the applicable capital gains tax from your final redemption amount before entering it as a cash flow.
What if I have both SIP investments and a lumpsum top-up in the same fund — can this handle that?
Yes, that is exactly the scenario XIRR is designed for — enter every individual instalment and top-up as its own dated cash flow along with the final value, and the calculator will solve for one blended annualised rate across all of them.
My XIRR came out unusually high or low — what should I check?
Double-check that investment amounts are entered as negative values and redemptions or current value as positive, and that no transaction date is duplicated or reversed, since a single sign or date error can distort the solved rate significantly.

What is XIRR / Annualized Return?

XIRR (Extended Internal Rate of Return) is the most accurate way to measure returns on investments with irregular cash flows, such as mutual fund SIPs where you invest different amounts on different dates.

For simpler point-to-point returns, CAGR (Compound Annual Growth Rate) shows the annualized return as if your investment grew at a steady rate every year. Use this calculator to evaluate any investment's actual performance.

lightbulb Example Calculation
Scenario: Ms. Sneha Patil, 32-year-old marketing manager from Mumbai — invested ₹1,00,000 in Axis Bluechip Fund in Jan 2020, current value ₹1,60,000 in Jan 2024 (exactly 4 years = 1,461 days)
1Absolute Return = (1,60,000 - 1,00,000) / 1,00,000 × 100 = 60%
2CAGR = (1,60,000/1,00,000)^(365/1461) - 1
3CAGR = (1.6)^0.25 - 1 = 1.1247 - 1 = 12.47%
✓ Result: Annualized Return (CAGR) = 12.47% | Absolute Return = 60%

help_outlineHow to Use the XIRR / CAGR Calculator

  1. Enter your Initial Investment — the total amount originally invested (purchase price for a stock, NAV × units for a mutual fund, or total cost for any asset).
  2. Enter the Current Value — the present market value of the investment (current NAV × units, current stock price × shares, or current property valuation).
  3. Enter the Duration in Days — 1 year = 365 days, 2 years = 730 days. For exact days, count from purchase date to today using any date difference tool.
  4. Results update instantly — CAGR (annualized return), absolute return percentage, and profit or loss amount are shown in real-time as you type.
  5. Use the performance summary to assess your investment — compare CAGR against benchmark indices (Nifty 50 CAGR, FD rates) to evaluate whether the investment is outperforming alternatives.

Benefits

  • Shows both CAGR (annualized) and absolute return — complete picture of investment performance
  • Converts any holding period to an annualized rate for apples-to-apples comparison across investments
  • Displays profit or loss amount in rupees alongside percentage gain — useful for tax and portfolio reporting
  • Works for any asset class: stocks, mutual funds, real estate, FDs, gold, and alternative investments
  • Helps evaluate whether a fund is outperforming its benchmark or a comparable FD rate

Key Terms

CAGR
Compound Annual Growth Rate — the annualized rate at which a lump sum investment grew from start to end date; smooths out year-to-year volatility
Absolute Return
Total percentage gain or loss without annualization: (Current - Invested) / Invested × 100; useful for comparing gains in rupees
XIRR
Extended Internal Rate of Return — for irregular cash flows (SIPs, multiple tranches); equals CAGR for single lump sum investments
Holding Period
Number of days from the date of investment to the current/exit date — affects CAGR (longer period generally smooths return)
Benchmark
Reference index (e.g., Nifty 50) used to evaluate a fund's return — a fund underperforming its benchmark destroys relative value

quizFrequently Asked Questions

What is the difference between CAGR and XIRR?
CAGR (Compound Annual Growth Rate) measures the annualized return for a single lump sum investment from a start date to an end date — it assumes no intermediate cash flows. XIRR (Extended Internal Rate of Return) is used when there are multiple cash flows at irregular intervals, such as a SIP where you invest monthly. For point-to-point lump sum investments, CAGR and XIRR give the same result. For SIPs or investments with multiple tranches, use a dedicated XIRR calculator that accepts date-wise cash flow entries — this calculator handles the simpler lump sum case.
What CAGR is considered good for equity mutual funds?
For equity mutual funds in India, a CAGR above 12% p.a. over a 5+ year period is generally considered good, while top diversified large-cap funds have historically delivered 12–15% CAGR over 10-year periods. However, past performance doesn't guarantee future returns. Compare your fund's CAGR against its benchmark index (e.g., Nifty 50) rather than a fixed "good" number — a fund delivering 14% when Nifty gave 15% is underperforming despite the high absolute number.
Why is my CAGR high but total rupee gain lower than expected?
CAGR and absolute gain measure different things. A high CAGR over a short period corresponds to a modest absolute gain in rupees. Example: ₹1,00,000 growing to ₹1,20,000 in 1 year = 20% CAGR = ₹20,000 gain. The same fund growing ₹1,00,000 to ₹2,00,000 over 10 years = ₹1,00,000 gain in rupees but only 7.18% CAGR. Compounding over long periods grows the rupee amount significantly even at lower CAGR — a 12% CAGR turns ₹1 lakh into ₹3.1 lakh in 10 years and ₹9.6 lakh in 20 years.
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