How XIRR works
XIRR finds the single yearly rate that, applied to each investment for the exact time it was invested, adds up to what you have now. In the example, ₹1 lakh invested in three parts between 2023 and 2025 is worth ₹1.28 lakh today, an XIRR of about 8.9% a year.
Questions people ask
What is XIRR?
XIRR is the yearly return on investments made at different times. It accounts for when each rupee went in or came out, so it is the right measure for SIPs, irregular top-ups and partial withdrawals.
Why does my mutual fund statement show XIRR?
Because SIPs are invested in many instalments. A simple percentage gain would understate the return on money invested recently and overstate it on money invested years ago.
What do I enter as the last row?
Today’s value of the investment, as money coming back, dated today. Add any redemptions as money coming back on their dates.
Method and sources
XIRR is the rate r at which the sum of each cash flow ÷ (1 + r)^(days since first flow ÷ 365) is zero, found numerically, as in spreadsheet XIRR functions. How we calculate.
Last reviewed 22 Oct 2026 by the WealthFeedz team.