📊

XIRR Calculator - Extended Internal Rate of Return

Free online XIRR calculator. Calculate the annualized internal rate of return for irregular cashflows and investments.

Inputs

🔒 Local Processing
Annualized Return (XIRR Equivalent)
+13.19%
Annualized Performance
Total Absolute Return45.00%
Total Net Profit$4500.00

How to Use This Calculator

  1. Enter investment amount, holding years, and ending portfolio value.

Formula & Mathematical Method

Solves discount rate that zeroes net present value of cash flows.

0 = Σ [ C_i / (1 + XIRR)^((d_i - d_0) / 365) ]

Explanation of Variables

SymbolVariable NameDescription & Role in Calculation
C_i, d_iCash Flows & DatesAmounts and chronological dates of contributions.

Worked Calculation Examples

$10k grown to $14.5k in 3 years

Scenario: 3-year return.

XIRR = 13.19% annualized.

Interpretation of Results

Review your calculated returns, periodic commitments, or asset projections to evaluate financial feasibility. Results distinguish between principal invested, accumulated interest or capital gains, and effective yield rates.

Primary Financial Output

The core economic value resulting from your input parameters and compounding frequency.

Key Context: Always compare this projection against alternative asset allocations and inflation benchmarks.

Practical Use Cases

Personal Financial Planning

Establish realistic monthly savings, borrowing, or investment targets to meet milestones.

Credit and Debt Evaluation

Quantify the true long-term interest cost of borrowing before signing binding loan agreements.

Limitations & Key Assumptions

  • Projections assume constant interest rates and unvarying compounding cycles over the entire horizon.
  • Excludes external macroeconomic variables such as inflation, regulatory taxation changes, or brokerage transaction fees.
  • Financial calculators provide mathematical projections for educational planning and do NOT constitute certified investment advice.

Frequently Asked Questions

What is the difference between CAGR and XIRR?
CAGR calculates point-to-point return on a single investment, while XIRR accounts for multiple irregular cash deposits and withdrawals.

Related Calculators & Tools

Mortgage CalculatorCompound InterestSIP CalculatorROI Calculator
Explore all Finance & Investments Calculators & Tools →

Authoritative References & Standards

Investor Education & Financial Tools Standards
Financial Industry Regulatory Authority (FINRA) • FINRA Investor Guidelines
Truth in Lending Act Disclosures and Calculations
Federal Reserve Board of Governors • 12 CFR Part 1026 (Regulation Z)