XIRR Full Form: Extended Internal Rate of Return
XIRR full form is Extended Internal Rate of Return — the annualised return of an investment with irregular cash flows, like an SIP.
What is XIRR?
XIRR (Extended Internal Rate of Return) calculates the annualised return when the cash flows happen at irregular intervals. It is the correct metric for SIP portfolios, real estate with staggered payments, or any investment with dated inflows/outflows.
Why XIRR matters
For an SIP, each instalment has a different holding period, so a single CAGR figure is misleading. XIRR treats every instalment as a separate cash flow and returns one blended annualised rate.
Example
If you SIP ₹10,000 every month for 10 years and the final corpus is ₹23.2 lakh, your XIRR is about 12% p.a.
Try it with a calculator
Frequently asked questions
XIRR vs CAGR — what's the difference?
CAGR works only when there is one investment and one withdrawal. XIRR works when there are multiple cash flows on different dates — which is the case for SIPs, real estate and rebalanced portfolios.
How is XIRR calculated in Excel?
Use =XIRR(cash_flow_range, date_range). Investments should be entered as negative numbers and the final maturity value as positive.
What is a good XIRR for SIP?
A long-term equity SIP XIRR of 12–14% is considered good in the Indian market. Anything sustained above 15% p.a. is exceptional.