XIRR Calculator for SIP Mutual Fund Returns
XIRR is the annualized return that accounts for the timing of each SIP investment. If you invested Rs 10,000/month for 3 years and the current value is Rs 4.5 lakh, your XIRR is approximately 18.6%. Simple CAGR would give a misleading answer since it ignores when each investment was made.
XIRR
17.11%
Annualized return using Newton-Raphson method
XIRR (Extended Internal Rate of Return) handles irregular cashflows. Use negative values for investments and positive for redemptions.
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Common questions about XIRR Calculator for SIP Mutual Fund Returns
What is the difference between CAGR and XIRR?
CAGR (Compound Annual Growth Rate) works only for a single lumpsum investment. XIRR (Extended Internal Rate of Return) handles multiple cashflows at different dates, making it the correct measure for SIPs. A mutual fund showing 15% CAGR on NAV and your SIP showing 12% XIRR are not contradictory - they measure different things. Always use XIRR to evaluate your personal SIP returns.
How do I calculate XIRR in Excel for SIP?
In Excel: enter all your SIP payment dates in column A (negative values for outflows), all redemption dates and amounts in column B (positive values for inflows). At the bottom, add current portfolio value as a positive inflow with today's date. Then use =XIRR(B:B, A:A) formula. XIRR calculates the annualized rate that makes net present value of all cashflows zero.
What is a good XIRR for a SIP in equity mutual funds?
Over 3-year SIP horizon: XIRR of 12-18% is excellent, 8-12% is good, 5-8% is average. Over 10-year SIP: 12-15% is excellent. Your XIRR depends on market conditions during your investment period, not just the fund's performance. SIPs started at market peaks have lower initial XIRR that typically improves dramatically over 7-10 years.