Work out annualised investment returns two ways: CAGR for a single lumpsum with one start and end value, or XIRR for irregular cashflows like SIPs, top-ups and partial withdrawals dated across time.
XIRR & CAGR Calculator
Measure investment returns — CAGR for a single lumpsum, XIRR for irregular cashflows (SIPs, top-ups, withdrawals).
CAGR assumes a single investment growing at a constant annual rate. XIRR uses actual dates via the Newton-Raphson method and needs at least one outflow (negative) and one inflow (positive). Estimates for guidance only.
CAGR vs XIRR — which to use
CAGR (compound annual growth rate) fits a single investment with one start and one end value: CAGR = (end value ÷ start value)1/years − 1. XIRR handles many dated cash flows — SIPs, top-ups and partial withdrawals — and finds the single annual rate that makes their present values balance. Mutual fund statements report XIRR for exactly this reason.
Worked examples
- CAGR: ₹1 lakh invested in 2020 grows to ₹2 lakh by 2026. CAGR = 21/6 − 1 = 12.25% a year. The “100% return” figure is absolute return, which ignores time.
- XIRR: a ₹10,000 monthly SIP for 3 years (₹3.6 lakh invested) worth ₹4.4 lakh today has an absolute gain of about 22%, but because most money was invested recently, its XIRR is about 13.5% a year.
Entering cash flows correctly
- Investments are negative, redemptions and the current value are positive.
- Use the actual dates — XIRR is sensitive to timing.
- Include dividends paid out as positive cash flows on the date received.
Why it matters
Comparing an FD’s 7% with a fund’s “40% return” is meaningless until both are annualised. XIRR puts them on the same footing. If you invest via SIPs, also see SIP vs lumpsum and the mutual fund calculator.
FAQs
Can XIRR be negative?
Yes, if the current value is below what you invested.
Why does my XIRR swing a lot in the first year?
Annualising short periods magnifies small gains or losses; XIRR becomes meaningful after a couple of years.
Figures last checked October 2026. Calculator results are estimates; actual lender, fund or tax outcomes can differ.