How to Calculate XIRR for Mutual Fund Investments

Start with the cash that crossed the holding boundary

A personal return depends on the amounts you invest and when you invest them. Build a dated record of purchases, cash received and the value you still hold before interpreting the annualized result.

What mutual fund XIRR measures

Mutual fund XIRR is a personal money-weighted annual rate for dated cash flows in one holding. Purchases are outflows. Cash distributions, redemptions and a supplied remaining holding valuation enter as positive amounts.

Treat remaining value as a hypothetical receipt at the end of the measurement. It is distinct from cash actually received.

Measure a holding with several purchases

Use XIRR when SIP purchases, irregular investments or partial redemptions make a start-to-end growth ratio insufficient. Use actual dates and consistent gross or net amounts.

Mutual fund XIRR formula

Solve for an annual rate r greater than −100% such that Σ Cᵢ ÷ (1 + r)^(dᵢ/365) = 0. Here dᵢ is the actual number of elapsed days from the earliest date. Net same-day entries exactly before root isolation.

Σ Cᵢ / (1 + r)^(dᵢ / 365) = 0

Reconcile a partial redemption

A purchase of 1,000 on 2022-01-01, a cash redemption of 200 on 2023-01-01 and remaining value of 900 on 2023-01-01 give XIRR of 10%. The normalized flows are −1,000 and +1,100 exactly 365 days apart.

The ending value is only the 900 still invested. The 200 redemption is separate. In a spreadsheet, use signed amounts −1000, 200 and 900 with their dates, or group the two same-day receipts as 1100.

1. Load the worked example or enter the 1,000 purchase.
2. Enter the 200 cash redemption a year later.
3. Enter 900 remaining value on that same date and verify the two normalized flows.

Read the result and its root status

A unique reported rate describes the supplied schedule. Multiple roots give no unique annual rate. A no-root, inconclusive or outside-range result has a different meaning and should be read with its explanation.

For example, dated flows −100, +230 and −132 at 365-day intervals give both 10% and 20%. An iterative tool may return one root based on its starting guess.

Keep the remaining valuation separate

Select open or closed holding, add each transaction with its type, date and positive magnitude, and enter the date and remaining value if open. Review the signed net flows before interpreting the result.

In closed mode enter cash receipts and omit remaining valuation. An open position can have zero remaining value, which does not itself supply a positive flow.

Choose a return measure for your question

XIRR measures personal money-weighted return on dated flows. CAGR compares two values without intervening external flows. A SIP projection assumes a return to calculate a possible future value. The general XIRR tool accepts signed cash flows beyond this fund workflow.

Apply one consistent ledger

Use the full history of one holding in one currency. The earliest transaction date includes a purchase. The valuation date is on or after all entered transactions. Value the remaining units after any same-day transactions.

Use dates from the same transaction record and the post-transaction holding valuation where dates coincide. Cash paid out and independently invested again may be separate cash flows. An internal reinvestment stays within the same holding.

Understand the date and solver bounds

Use up to 24 transactions with amounts through 10^10 and up to eight fractional places. Dates range from 1900-01-01 through 2100-12-31. The solver reports rates greater than −99.9999999999% and less than 100000000%. Nonconventional schedules beyond its reduced-degree limit of 24 are inconclusive.

Sub-year annualization can magnify a small movement. For multiple sign changes, supported reduced-date polynomials are checked for all roots. An inconclusive result does not prove there is no XIRR.

Avoid counting the same amount twice

Do not enter reinvested distributions as cash received or include already redeemed units in remaining value. Keep fund performance, personal XIRR and lump-sum CAGR distinct.

If you begin measuring midway through ownership, a general XIRR ledger needs a starting valuation for that measurement window. Omitting earlier purchases while counting their later proceeds misstates the return.

Use local terms and one currency

In India enter SIP purchases and cash redemptions in INR. In the USA use actual mutual fund cash distributions in USD, and in the UK distinguish cash income from value retained within the fund. Canadian and Australian investors can format in CAD and AUD. The method does not apply local tax treatment.

Educational scope

Educational calculation based on supplied amounts and dates. It does not infer units, NAV, fees, taxes, FX or future returns and does not provide personalized investment advice.

Frequently asked questions

Sources and review

Sources reviewed Nov 10, 2026. Consult current local rules before relying on time-sensitive information.

• Microsoft XIRR documentation
• Zerodha Coin investment details
• SEC distribution bulletin
• MoneyHelper investing overview
• OSC investor education
• ASIC managed fund guide