XIRR Calculator
Calculate Extended Internal Rate of Return (XIRR) for irregular transaction cash flows Ledger.
| Valuation Change | Ending Portfolio Value | Solved XIRR |
|---|---|---|
| -20.00% | $13,200.00 | -3.22% |
| -10.00% | $14,850.00 | 3.33% |
| +0.00% | $16,500.00 | 9.54% |
| +10.00% | $18,150.00 | 15.46% |
| +20.00% | $19,800.00 | 21.12% |
* Impact of ±10% and ±20% valuation shifts on your overall IRR yield.
Educational estimate. Not financial advice.
Historical mid-range XIRR of 8.16% matches historical long-term equity returns under S&P 500 Historical Averages.
Your cash ledger contains 4 entries spanning 731 days. The solved XIRR of 8.16% represents the exact discount rate that yields an NPV of $0. In comparison, a benchmark index like the S&P 500 earning 8% would have grown your deposits into $16,083, meaning your portfolio outperformed the index by $417.
How to Use the XIRR Calculator
Measure your true investment performance with our dedicated XIRR Calculator. While simple CAGR is fine for static investments, XIRR is the gold standard for active stock accounts, mutual fund SIPs, real estate development equity calls, and portfolios with recurring cash flows. Easily log your transaction history, account for tax drag and inflation, and view a comparison against historical benchmarks.
- Irregular Cash Flows Ledger: Bounded parameter in the mathematical model.
- Effective Tax on Gains (%): Bounded parameter in the mathematical model.
- Adjust for Inflation: Bounded parameter in the mathematical model.
- Annual Inflation Rate (%): Bounded parameter in the mathematical model.
- S&P 500 Benchmark Return (%): Bounded parameter in the mathematical model.
What is XIRR and how does it differ from CAGR?
CAGR measures the growth of a single lump sum from start to finish, ignoring timing. XIRR (Extended Internal Rate of Return) accounts for multiple cash flows (deposits, withdrawals, reinvestments) occurring at irregular intervals, providing a mathematically accurate annualized return.
How does the calculator solve for XIRR?
Because XIRR cannot be solved algebraically, the calculator uses the Newton-Raphson numerical optimization algorithm to iteratively find the discount rate that makes the Net Present Value (NPV) of all cash flows equal to exactly zero.
Why is the initial transaction negative and the final positive?
In cash flow accounting, money leaving your wallet (invested capital, deposits) is recorded as negative (cash outflow), while money returning to you (withdrawals, dividends, or the current value of the asset) is recorded as positive (cash inflow).
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