Calculate XIRR (Extended Internal Rate of Return) for irregular cash flows. Free online XIRR calculator with formula, examples, and FAQ.
XIRR (Extended Internal Rate of Return) calculates the annualized return on investment when cash flows occur at irregular intervals. Unlike CAGR which assumes a single investment and single redemption, XIRR handles multiple cash flows at different times — making it ideal for SIP investments, real estate with partial exits, or any investment with irregular contributions and withdrawals.
XIRR: Solve for r where Σ(CF_i / (1 + r)^t_i) = 0Where CF_i is each cash flow (negative for investments, positive for returns), t_i is the time in years from the initial investment, and r is the XIRR rate. Newton's method is used to iteratively solve this equation: r_new = r_old - NPV(r) / NPV'(r) until convergence.
| Input | Output |
|---|---|
| Invest $100,000, receive $20,000 (yr 1), $30,000 (yr 3), $50,000 (yr 5) | XIRR: -2.44%, Total Inflows: $100,000, Profit: $0 |
| Invest $50,000, receive $15,000 (yr 1), $20,000 (yr 2), $30,000 (yr 4) | XIRR: 10.33%, Total Inflows: $65,000, Profit: $15,000 |
| Invest $200,000, receive $50,000 (yr 1), $80,000 (yr 3), $150,000 (yr 5) | XIRR: 11.36%, Total Inflows: $280,000, Profit: $80,000 |