insightsXIRR / Annualized Return Calculator
Calculate CAGR and absolute returns on your investments over any time period
editInvestment Details
currency_rupee
Total amount invested
currency_rupee
Present market value of the investment
calendar_today
1 year = 365 days, 2 years = 730 days
info Return Formulae
CAGR = ((Current/Invested)^(365/days) − 1) × 100
Absolute Return = (Current − Invested) / Invested × 100
CAGR annualizes returns across any holding period
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
- 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).
- Enter the Current Value — the present market value of the investment (current NAV × units, current stock price × shares, or current property valuation).
- 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.
- Click "Calculate Returns" — CAGR (annualized return), absolute return percentage, and profit or loss amount are shown instantly in the result panel.
- 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. Small-cap and mid-cap funds may show 18–25% CAGR in bull periods but carry larger drawdown risk.
How do I calculate CAGR for an SIP investment?
For SIPs, using this calculator directly gives only an approximation because each monthly installment has a different holding period. To calculate accurate returns on SIPs, use the XIRR function in Excel: =XIRR(values, dates) where values is the negative investment amounts (cash out) and positive final redemption (cash in), and dates is each transaction date. Many mutual fund apps (Zerodha Coin, Groww, MFCentral) show your exact XIRR directly in portfolio statements — check there for precise SIP return figures before evaluating fund performance.
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.
Can I use this calculator for real estate or property investment returns?
Yes. Enter your purchase price as Initial Investment, current market value as Current Value, and days held as Duration. The calculator shows capital appreciation CAGR. Note: this doesn't include rental income, stamp duty, registration costs, maintenance, or property tax. For a complete return analysis: add total rental income received to Current Value, and add all purchase costs (stamp duty, brokerage, renovation) to Initial Investment before calculating. Real estate CAGR in major Indian metros has ranged from 5–10% p.a. for capital appreciation over the last decade, with rental yield adding 2–3% on top.