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Finance Calc Kit
Investments

XIRR Calculator

Calculate annualized returns for investments with irregular cash flows using XIRR formula

Cash flow schedule

Enter dated cash flows. Negative amounts are investments or outflows. Positive amounts are returns, dividends, or redemptions.

Cash flows (2)
$
$

XIRR (Extended Internal Rate of Return)

20.0%

Annualized return accounting for irregular dates

Total invested

$10,000.00

Sum of all negative cash flows

Current value

$12,000.00

Sum of all positive cash flows

Profit / loss

$2,000.00

Net cash flow across all entries

Absolute return

20.0%

Simple return without time weighting

How XIRR is calculated

XIRR finds the annual discount rate that sets the net present value of dated cash flows to zero.

  1. 1. Sort cash flows by date

    2 dated entries are ordered chronologically, with negative amounts treated as investments and positive amounts as returns.

  2. 2. Express each flow in years from the first date

    ti=Datei−Date0365t_i = \frac{\mathrm{Date}_i - \mathrm{Date}_0}{365}

    Each cash flow is discounted using actual days elapsed divided by 365, matching the Excel XIRR convention.

  3. 3. Solve for the rate that sets NPV to zero

    ∑i=1nCi(1+r)ti=0\sum_{i=1}^{n} \frac{C_i}{(1 + r)^{t_i}} = 0

    Newton-Raphson iteration finds r = 20.00%. Absolute return is 20.0% because total inflows of $12,000.00 exceed invested capital of $10,000.00 by $2,000.00.

Cash flow summary

DateAmountType
2025-09-14-$10,000.00Investment
2026-09-14$12,000.00Return
Report tool

Understanding Extended Internal Rate of Return (XIRR)

XIRR calculates the annualized return on an investment when cash flows occur on irregular dates. Unlike standard IRR, which assumes equal time intervals between flows, XIRR uses actual calendar dates to weight each deposit and withdrawal.

Mutual fund SIPs, private equity distributions, and real estate projects often involve lumpy, date-specific cash flows. XIRR captures the true time-weighted performance in those cases. For equal-period project cash flows, use our IRR calculator. For a single starting and ending value over multiple years, compare annualized growth with our CAGR calculator. For simple buy-and-hold percentage gains without date weighting, see our rate of return calculator.

The XIRR Formula

XIRR finds the annual rate rr that sets the net present value of all dated cash flows to zero:

∑i=1nCi(1+r)ti=0\sum_{i=1}^{n} \frac{C_i}{(1 + r)^{t_i}} = 0

Where CiC_i is the cash flow on date ii and tit_i is the elapsed time in years from the first cash flow date, calculated as actual days divided by 365 (matching the Excel XIRR convention).

Worked Example

Suppose you invest $10,000 on January 1 and receive $12,000 exactly one year later on January 1 of the following year:

  • Total invested: $10,000
  • Current value: $12,000
  • Profit / loss: $2,000
  • Absolute return: 20.00%
  • XIRR: 20.00% (because exactly one year elapsed)

XIRR vs Absolute Return

Absolute return is the simple percentage gain: profit divided by total invested capital. XIRR annualizes that gain based on the actual time each dollar was at risk. When multiple investments occur at different dates, absolute return can overstate or understate performance compared to XIRR because it ignores how long capital was deployed.

Sign Convention

Enter negative amounts for money you invest or pay out. Enter positive amounts for money you receive, including dividends, interest, partial redemptions, and final sale proceeds. At least one negative and one positive flow are required for a valid XIRR result.

Frequently asked questions

What is the difference between XIRR and IRR?
IRR assumes cash flows occur at regular intervals (typically annual). XIRR accepts specific calendar dates and discounts each flow by the exact elapsed time. Use XIRR for SIPs, irregular contributions, and real-world portfolio tracking.
Why does XIRR use 365 days per year?
The Excel XIRR function and most portfolio tools divide actual elapsed days by 365 to convert calendar time into fractional years. This convention is standard for mutual fund fact sheets and performance reporting.
What does current value mean in this calculator?
Current value is the sum of all positive cash flows entered. For a single final redemption, this equals your exit proceeds. With multiple inflows, it represents total returned capital plus income received.
Can XIRR be negative?
Yes. When total returned capital is less than total invested capital, XIRR reflects a loss annualized over the holding period. A negative XIRR means the investment underperformed relative to a zero return benchmark.
Are the results stored on a server?
No. All math runs in your browser. Nothing is sent to the server.
Can I share my cash flow inputs?
Yes. Changing dates or amounts updates the page URL so you can copy and share the exact scenario.

Resources and references

The formulas and methods in this calculator were checked against these independent sources.