XIRR Calculator: The Smartest Way to Measure SIP and Mutual Fund Returns

What is XIRR?

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 —

Uneven investment dates
Irregular contributions
Withdrawals

That makes XIRR more accurate for SIPs, SWPs, mutual funds, or even real estate and insurance-linked investments, especially in the UAE.

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What is an XIRR Calculator?

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.

Common Uses of SIP XIRR Calculator:

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.

XIRR Formula (Simplified)

While tools like Excel do the job easily, the conceptual formula behind XIRR is —

XIRR = (FV / PV) ^ (1 / T) - 1

Where:

FV = Future Value (withdrawal or redemption amount)
PV = Present Value (investment amount)
T = Time in years

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.

What are the Benefits of the SWP Calculator?

We have discussed some of the key benefits of the SWP plan calculator:

Easy Financial Planning

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.

Saves Time and Effort

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.

Compare Different Investment Scenarios

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.

Helps Avoid Premature Fund Depletion

The calculator shows how withdrawals and returns affect your corpus, helping you avoid running out of funds too early.

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How to Use an XIRR Calculator Online?

Using an online XIRR calculator for SIP is simple —

Enter Dates & Amounts – Log every investment/withdrawal with the exact dates.
Submit – Click calculate.
Get Results – The calculator returns the annualised XIRR rate instantly.
Use Insights – Evaluate performance and compare investments.

How to Calculate XIRR in Excel?

If you prefer Excel over online tools —

Steps:

List all investments as negative values (outflows)
List all returns or redemptions as positive values
In the next column, list the exact transaction dates

Use the Excel formula:
=XIRR(values, dates)

This gives you the annualised return, adjusted for actual cash flow timing.

Example: XIRR Calculation for SIP

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:

The timing of each SIP
The compounding effect
The exact investment period

Unlike simple return formulas, XIRR accounts for the actual dates, giving a true picture of your investment’s performance.

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XIRR vs. CAGR

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.

What is a Good XIRR?

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 —

Moderate-risk equity funds: 7%–9% XIRR is considered reasonable if inflation is around 2%.
Debt funds: A stable 5%–6% XIRR could be acceptable.
Aggressive small-cap funds: XIRRs of 12%–15% may be achievable but come with higher risk.

It’s also important to compare a fund’s XIRR to:

Its benchmark (e.g., Nifty, Sensex)
Its peer group performance

For instance, if a large-cap fund delivers a 10% XIRR while its benchmark returns 8%, it indicates solid performance.

Pro Tip:

Don't compare your XIRR with others blindly. A "good" XIRR also depends on consistency, volatility, and time taken to achieve the returns.
Use a XIRR calculator for SIP to track if your investments are meeting realistic return goals.

Conclusion

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.

Frequently Asked Questions

How is XIRR calculated?

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

Is XIRR of 12% good?

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%.

How to calculate XIRR for FD in Excel?

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.