CAGR assumes a single lumpsum and a single end. XIRR handles irregular cashflows — additional SIPs, top-ups, partial redemptions, dividends — exactly as your folio actually behaved.
Each preset loads a realistic flow series. Edit cells, add rows, remove rows.
Beats Nifty 500 TRI 25Y geometric (~11%). Solid.
The math: XIRR is the rate r that solves Σ(C_i / (1+r)^(d_i/365)) = 0, where C_i is the i-th cashflow and d_i is days from the first flow. We solve this numerically by Newton-Raphson with a bisection fallback when Newton fails to converge — same algorithm Excel uses internally.
Sign convention: negative = money you put in, positive = money you took out. The final redemption is positive. Most folio-tracker exports follow this convention.
Why XIRR ≠ CAGR for SIPs: Each SIP instalment has a different holding period. Money put in month 1 of a 5-year SIP compounds for 5 years; money put in month 59 compounds for ~1 month. XIRR weights each flow by its actual holding period; CAGR pretends all flows happened at t=0, which is wrong for SIPs.
Multiple solutions exist when cashflow signs change more than once. Bisection picks the one in the [-99%, +1000%] bracket. If your flow pattern is exotic (multiple sign changes), the IRR may not be unique — read the result as "an" IRR not "the" IRR.
Tax-adjusted XIRR is what matters for asset-allocation decisions. If two assets have the same pre-tax XIRR, the one with lower tax-on-redemption (equity LTCG 12.5% > ₹1.25 L vs slab on debt) is the better allocation.
Further reading: What is XIRR — a worked walkthrough in our insights.
Calculators on this site use the inputs you provide and the assumptions disclosed in their methodology. Returns are not promised or guaranteed. MintByte is an AMFI-registered mutual fund distributor (ARN-314872). MintByte does not issue buy/sell recommendations on specific securities — the site is an educational data and analytics platform. Not investment advice. Methodology · How we earn.