Extended Internal Rate of Return (XIRR) is the most accurate method to calculate returns when you have multiple investments at different times.
Use negative values for investments (money out of pocket) and positive values for withdrawals or the current market value.
| Date (DD-MM-YYYY) | Amount (₹) | Action |
|---|---|---|
When you invest via SIP, your money is invested at different market points. A simple CAGR calculation only works for one-time investments. XIRR (Extended Internal Rate of Return) considers the timing of every cash flow to give you the true annualised return of your portfolio.
CAGR is used for "point to point" returns (Beginning to End). XIRR is used for "series of cash flows" (Multiple Investments/Withdrawals).
For equity portfolios in India, an XIRR above 12-15% over a long period (5+ years) is considered very good. For debt portfolios, 6-8% is standard.