Calculator
The true annualized return of your investment — a simple lump-sum CAGR, or a full XIRR for irregular, multi-date cashflows.
XIRR: 7.62% per year
Calculation Type
Cashflows (date + amount, mark each as invested or received)
XIRR
7.62%
Cashflows Used
3
CAGR assumes a single lump-sum investment at the start and a single value at the end. XIRR handles any number of cashflows on any dates — the right tool for SIPs, staggered investments, or partial withdrawals, since it accounts for exactly when each rupee went in or came out.
XIRR finds the discount rate that makes the net present value of all your cashflows exactly zero, using each cashflow's exact date. There's no direct formula for this — it's solved iteratively (Newton-Raphson), the same technique Excel's own XIRR function uses.
A discount rate can only make a set of cashflows net to zero if some are negative (money out) and some are positive (money in) — an all-outflow or all-inflow list has no such rate, so those aren't solvable.
CAGR only works cleanly for a single investment made once and valued once. The moment you have multiple investments on different dates — a SIP, a top-up, a partial withdrawal — CAGR can't account for the timing of each cashflow. XIRR can: it finds the single annualized rate that makes all your cashflows, on their actual dates, net to zero.
Disclaimer:This calculator solves for the annualized return implied by the numbers you enter — it doesn't predict future returns. Cross-verify important calculations independently before making financial decisions.
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