Extended internal rate of return solves for a single annualised rate that sets the net present value of irregular cash flows to zero.
It is widely used when SIPs, switches, and redemptions do not line up neatly on a calendar.
XIRR Calculator — key points
- Multiple dated flows
- Numeric solver for annual XIRR estimate
- Pie of total outflows vs inflows
When XIRR is useful
Better than CAGR when timing and size of each cash movement matters.
- Enter outflows as negative numbers and inflows as positive.
- More accurate dates yield more meaningful rates.
Concept (not closed form)
Find rate r such that Σ ( CF_i / (1 + r)^(t_i) ) = 0 where t_i is time in years from the first cash flow.
Symbols
- CF_i — Cash flow on date i (sign matters).
- t_i — Year fraction from first flow to flow i.
Solver caveats
Multiple mathematical roots can exist; the tool picks a conventional starting guess. Extreme or inconsistent inputs may fail to converge.
Benefits
- Captures messy real-world timing.
- Helps compare two strategies with different cadence.
Frequently asked questions
- Same as Excel XIRR?
- Conceptually similar; implementation details can differ slightly.
- Annual vs monthly compounding?
- XIRR is annualised by convention here.
Profitspire Hub publishes educational calculators only. Rates, slabs, and rules change—confirm with fund houses, banks, government notifications, or a qualified professional before acting.