XIRR (Extended Internal Rate of Return) is the annualised return for investments with irregular cashflows at irregular dates — which describes every SIP investment perfectly. When you invest ₹10,000 per month in a mutual fund and redeem the entire corpus after 10 years, each monthly investment has been invested for a different duration. CAGR cannot account for this; XIRR can.

XIRR solves for the discount rate (r) that makes the Net Present Value of all cashflows equal to zero, using Newton-Raphson iteration. For a typical 10-year SIP of ₹10,000/month growing at 12% CAGR, the XIRR will be approximately 12% — confirming the calculator. But for a fund that had strong early years and weak recent years (or vice versa), XIRR will diverge significantly from the trailing 10Y CAGR, giving a more accurate picture of the actual investor experience.

XIRR is the standard metric used by portfolio management platforms, AMFI's fund performance disclosures, and SEBI-registered investment advisers to measure actual investor returns on SIP portfolios. If your fund platform shows 'absolute returns' or 'point-to-point returns' rather than XIRR, it is likely misleading you — especially for SIPs running less than 3 years where market timing has an outsized effect.

Use this calculator to compute XIRR on any series of cashflows. Enter each investment date and amount (negative for investments, positive for redemptions), then add the final redemption value. The calculator uses iterative Newton-Raphson to converge on the annualised return. For accurate results, include every SIP instalment as a separate cashflow. Educational use only.