What is XIRR?
XIRR (Extended Internal Rate of Return) is the most accurate method to calculate returns when you have:
- Multiple investments at different dates
- Irregular SIP amounts
- Combination of SIP + lumpsum
- Partial withdrawals or redemptions
- Different entry/exit dates for different funds
NPV = Σ (Cash Flow / (1 + XIRR)^((Date - Start Date) / 365)) = 0
XIRR accounts for the timing of each cash flow, making it far more accurate than simple CAGR (Compound Annual Growth Rate).
XIRR vs CAGR: Real Example
Scenario: SIP of ₹10,000/month for 3 years
| Metric |
Simple CAGR |
Real XIRR |
Difference |
| Total Invested |
₹3,60,000 |
₹3,60,000 |
- |
| Current Value |
₹4,50,000 |
₹4,50,000 |
- |
| Calculated Return |
25% CAGR |
14.2% XIRR |
10.8% error! |
Why the difference? CAGR treats all ₹3.6L as invested on Day 1. XIRR correctly accounts for each ₹10K invested monthly.
When to Use XIRR Calculator?
Use XIRR when calculating returns for:
- SIP Investments - Monthly/quarterly contributions at different dates
- Mixed Portfolios - Combination of SIP + lumpsum investments
- Partial Withdrawals - Systematic Withdrawal Plan (SWP) or ad-hoc redemptions
- Dividend Reinvestments - Dividends received and reinvested
- Stock Portfolios - Buying stocks at different prices on different dates
- Real Estate - Property investments with rental income
How RAYR Fin Calculates XIRR
RAYR Fin uses the Newton-Raphson numerical method with 500 iterations to calculate XIRR accurate to 8 decimal places.
Step-by-Step Process:
- Extract all cash flows (investments, withdrawals) with dates from your CAS
- Add current portfolio value as final cash flow at today's date
- Apply Newton-Raphson iteration: XIRR(n+1) = XIRR(n) - f(XIRR(n)) / f'(XIRR(n))
- Converge when difference < 0.00000001
- Return annualized XIRR as percentage
Example Calculation
| Date |
Cash Flow |
Type |
| 01-Jan-2023 |
-₹10,000 |
Investment (SIP) |
| 01-Feb-2023 |
-₹10,000 |
Investment (SIP) |
| 01-Mar-2023 |
-₹10,000 |
Investment (SIP) |
| ... |
... |
... |
| 04-May-2026 |
+₹4,50,000 |
Current Value |
Calculated XIRR: 14.2% p.a.
Common XIRR Calculation Mistakes
- ❌ Using CAGR instead of XIRR for SIP investments
- ❌ Ignoring partial withdrawals in the calculation
- ❌ Not accounting for reinvested dividends
- ❌ Using wrong dates (NAV date vs transaction date)
- ❌ Missing the final cash flow (current portfolio value)
Why Use RAYR Fin XIRR Calculator?
| Feature |
RAYR Fin |
Excel XIRR() |
Other Calculators |
| Automatic CAS Upload |
✅ Yes |
❌ Manual entry |
❌ Manual entry |
| Handles 100+ Transactions |
✅ Yes |
⚠️ Slow |
❌ Limited |
| Multiple Funds |
✅ Unlimited |
❌ One at a time |
❌ Limited |
| Privacy |
✅ Browser-only |
✅ Offline |
❌ Uploads to server |
| Cost |
✅ Free |
⚠️ Need Excel |
⚠️ Varies |
Try RAYR Fin XIRR Calculator Now
Upload your CAS and get instant XIRR for all your mutual funds in 3 seconds.