Calculate returns on SIPs and irregular investments
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Add transactions and click Calculate to see your XIRR
The most accurate way to measure SIP and irregular investment returns
Calculates the actual return on investments with multiple cash flows at irregular intervals.
Unlike CAGR, XIRR accounts for the specific dates of every investment and redemption.
The best metric to measure SIP performance as each installment is invested on a different date.
Gives weightage to time, acknowledging that money invested earlier has more time to grow.
Essential for reviewing the overall performance of a portfolio with frequent buy/sell transactions.
Helps in comparing your personal investment returns against the benchmark indices correctly.
Extended Internal Rate of Return (XIRR) is a method used to calculate returns on investments where there are multiple transactions happening at different times. Unlike CAGR which only considers start and end values, XIRR considers every inflow and outflow corresponding to its date.
Exact day-wise calculation
Handles any timeline
Used by Mutual Funds
Use CAGR. Since there is only one start date and one end date, CAGR is sufficient and accurate.
Use XIRR. Since money is invested on various dates, CAGR cannot capture the time value of each installment correctly.
Use XIRR. If you partially withdrew money during the investment period, XIRR factors this in.
Use CAGR. For a quick check of point-to-point growth.
Common queries about XIRR
In a SIP, every installment is invested for a different duration. The first installment is invested for the longest time, and the last for the shortest. XIRR calculates the return by accounting for these different holding periods, which a simple CAGR calculation cannot do.