Question 1

What is XIRR?

Accepted Answer

XIRR (Extended Internal Rate of Return) is the annualised return on a series of investments and withdrawals made on different dates. It accounts for the exact timing of every cash flow.

Question 2

Why use XIRR instead of CAGR?

Accepted Answer

CAGR works only for a single investment with one start and end value. XIRR handles multiple cash flows on irregular dates, which is exactly the case for SIPs, additional purchases and partial redemptions.

Question 3

How do I use this XIRR calculator?

Accepted Answer

Enter each cash flow with its date. Mark money you put in as 'Invested' and money you took out or your current value as 'Received'. You need at least one of each for XIRR to be defined.

Question 4

What is a good XIRR for mutual funds?

Accepted Answer

For long-term equity mutual fund SIPs, an XIRR of 11-14% has been common historically. A higher XIRR is better, but compare it against a relevant benchmark and your own goals.

XIRR Calculator

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