Stop guessing your portfolio's performance. This XIRR calculator determines your true annualized return by accounting for every deposit, withdrawal, and the exact timing of your cash flows—essential for SIPs and irregular investments.
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Calculating investment returns is rarely straightforward. If you simply divide your profit by your cost, you get an absolute return, but this number is misleading because it ignores time. A 20% return over 10 years is very different from a 20% return over 6 months.
This calculator uses the Extended Internal Rate of Return (XIRR) formula. Unlike simple CAGR, which only looks at the start and end values, XIRR considers every single transaction you made during the investment period. It "weights" each dollar based on how long it was invested. This makes it the only accurate way to measure performance for active portfolios where money moves in and out frequently.
This tool is specifically designed for scenarios where "simple math" fails. Here are the most common use cases:
The underlying logic of this calculator finds a discount rate that brings the Net Present Value (NPV) of all your cash flows to zero. In plain English, it asks: "What constant annual interest rate would I need to earn on every dollar, for the exact number of days it was invested, to end up with my current balance?"
It uses an iterative algorithm to solve this equation:
0 = Σ (Cash Flow) / (1 + Rate)^((Date - First Date) / 365)
The result is your annualized compound return, which you can directly compare against benchmarks like the S&P 500 or fixed deposit rates.
While XIRR is the gold standard for portfolio tracking, it is important to understand its constraints to use it effectively:
This is a rare anomaly that occurs if you had a large balance for a long time that lost value, followed by a recent large deposit that gained value. While your absolute dollars might show a profit, the time-weighted performance of your capital was negative. Double-check your dates to ensure no years were swapped.
Only if you took the cash out. If the dividends were automatically reinvested (buying more units or shares), you do not need to enter them. They are already reflected in your higher "Ending Balance" or increased share count.
CAGR assumes a one-time investment at the start and no changes until the end. XIRR is a more advanced version of CAGR that handles multiple deposits and withdrawals in between. If you only made one deposit and no withdrawals, XIRR and CAGR will be identical.
Yes. Enter the initial purchase as a positive number (money you received/spent) and your repayments as negative numbers. The resulting XIRR will give you the effective APR you are paying on that debt.
Last Updated: January 2026. This tool is maintained by the Calculatorbudy technical team to ensure compliance with modern financial standards.