XIRR Calculator is your go-to tool for accurately calculating returns when you've made multiple investments at different times, like with SIPs or mutual funds. In the UAE, where regular pension systems are still evolving, knowing the true return on your investments is essential for long-term ...read more
XIRR (Extended Internal Rate of Return) is a financial metric used to calculate the annualised return on investments involving irregular cash flows, like when you invest or withdraw at different times.
Unlike CAGR (Compound Annual Growth Rate), which assumes a fixed investment period, XIRR accounts for —
That makes XIRR more accurate for SIPs, SWPs, mutual funds, or even real estate and insurance-linked investments, especially in the UAE.
Some of the best Investment quotes in UAE & Dubai are:
An XIRR calculator is a financial tool that helps you calculate the real return on investment by factoring in the exact dates and amounts of each cash flow. Instead of using complex formulas, you can simply input your data and get instant results — either via Excel or an XIRR calculator online.
Use Case | Description |
---|---|
Calculating SIP Returns | One of the most popular uses. An XIRR calculator for SIP in UAE helps measure the annualised return from monthly investments that occur over different time periods. |
Evaluating Mutual Fund Performance | Useful for investors who invest and withdraw at irregular intervals. The XIRR calculator online can accurately compute how well your mutual fund is performing. |
Measuring Real Investment Returns | Unlike CAGR, which assumes a single investment date, XIRR adjusts for all deposits and withdrawals—perfect for real-world investing scenarios. |
Assessing Insurance-Linked Investment Plans | In the UAE, many investment-cum-insurance products have irregular premium payments and benefits. XIRR SIP calculators can measure their true profitability. |
Real Estate or Private Equity Investments | For assets where money goes in and out at various stages (construction, rent, resale), XIRR shows the annualized rate of return based on cash flow timing. |
Portfolio Tracking Over Time | Use the XIRR return calculator to compare the performance of different assets over long durations where entry/exit points differ. This allows for a more accurate evaluation of returns across investments with different cash flow schedules. |
SWPs (Systematic Withdrawal Plans) | If you’re regularly withdrawing from a fund (e.g., during retirement), XIRR accurately measures how much return your corpus is still generating. |
For UAE Investors without Pension Plans | Expats and freelancers often invest irregularly. A XIRR calculator UAE tool can track whether these investments are aligned with retirement goals. |
While tools like Excel do the job easily, the conceptual formula behind XIRR is —
XIRR = (FV / PV) ^ (1 / T) - 1
Where:
But since cash flows happen at different intervals, the actual formula becomes more complex. It is best solved with an online XIRR calculator or Excel’s XIRR function.
We have discussed some of the key benefits of the SWP plan calculator:
An SWP calculator helps you plan regular withdrawals from your investments with ease. It shows how long your money will last, making it ideal for budgeting your monthly expenses in the UAE.
No need for complex math or spreadsheets. Just enter a few details, and the calculator gives you instant results—perfect for working professionals and retirees managing finances.
With a systematic withdrawal plan calculator, you can try different withdrawal amounts, returns, or durations to see what works the best for you. This helps you make smarter and more flexible investment decisions.
The calculator shows how withdrawals and returns affect your corpus, helping you avoid running out of funds too early.
Using an online XIRR calculator for SIP is simple —
If you prefer Excel over online tools —
Steps:
Use the Excel formula:
=XIRR(values, dates)
Ali invests in a mutual fund SIP with the following cash flows —
Date |
Transaction |
Amount (AED) |
---|---|---|
01-Jan-2025 |
SIP Investment |
-1,000 |
01-Feb-2025 |
SIP Investment |
-1,000 |
01-Mar-2025 |
SIP Investment |
-1,000 |
01-Apr-2025 |
Redemption |
+3,200 |
Use the Excel formula = XIRR (values, dates)
=XIRR({-1000, -1000, -1000, 3200}, {01-Jan-2023, 01-Feb-2025, 01-Mar-2025, 01-Apr-2025})
Result: The XIRR yields an annualised return of approximately 10.74%.
This return (10.74%) reflects:
Unlike simple return formulas, XIRR accounts for the actual dates, giving a true picture of your investment’s performance.
Feature |
XIRR |
CAGR |
---|---|---|
Use Case |
Irregular cash flows (e.g. SIPs) |
Fixed investment periods |
Accuracy |
High (timing-sensitive) |
Average-based |
Suitable For |
SIPs, SWPs, real estate, mutual funds |
Lump sum investments |
Tip: Use XIRR calculator SIP if you’re investing in UAE-based or international mutual funds through SIPs.
A "good" XIRR (Extended Internal Rate of Return) varies depending on several factors: your investment goals, risk appetite, and current market conditions.
As a rule of thumb, a good XIRR should beat inflation to ensure actual wealth creation. For example —
It’s also important to compare a fund’s XIRR to:
For instance, if a large-cap fund delivers a 10% XIRR while its benchmark returns 8%, it indicates solid performance.
Pro Tip:
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The XIRR calculator is one of the best tools to measure the real returns on your investments, especially if you invest irregularly or over long periods. Whether you’re using a SIP XIRR calculator, Excel, or an XIRR calculator online, this metric gives you a clearer picture of your portfolio’s performance far beyond what CAGR or simple averages can show.
Use the XIRR calculator UAE investors trust to make informed, confident financial decisions today and secure your future returns tomorrow.
XIRR (Extended Internal Rate of Return) calculates the annualised return from a series of cash flows made at irregular intervals. It’s ideal for tracking investments like SIPs or real estate, where money is added or withdrawn at different times
Yes, an XIRR of 12% is considered good for equity mutual funds, as it indicates strong returns above inflation. For debt funds, a good XIRR typically ranges between 6% to 8%.
List all transactions (investments as negative, withdrawals as positive) with corresponding dates. In the last row, add the FD maturity value and date, then use the Excel formula =XIRR(values, dates) to get your return.