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“We don't tell what to pick, we tell how to pick”

XIRR Calculator

Calculate the Extended Internal Rate of Return (XIRR) for irregular transaction cash flows, adjusted for inflation.

💡 Motto: We don't tell what to pick, we tell how to pick.

Cash Flow Ledger

₹
📉 Outflow (Buy)
₹
📉 Outflow (Buy)
₹
📉 Outflow (Buy)
₹
📈 Inflow (Sell/Val)
💡 Dynamic Valuation Rule:To evaluate a running portfolio, the **last transaction** should be the **current date** with a **positive amount** representing the current valuation of your holdings. All past buys should be entered as negative amounts.

XIRR Calculations

Expected Inflation Rate
%
Nominal XIRR

14.70%

Real XIRR

9.15%

Total Cash Invested:₹1,20,000
Total Payout/Value:₹1,45,000
Net Gain:₹25,000
⚠️ Real Growth Reality:Your nominal compound rate is 14.70%. Factoring in 5.09% price inflation, the real rate at which your capital grew in purchasing power is 9.15% p.a.

XIRR (Extended Internal Rate of Return) Explained

Nominal XIRR vs. Simple Returns

When you invest money periodically (like monthly mutual fund SIPs, partial lumpsum additions, or erratic buy-and-sell transactions), calculating simple absolute return or basic CAGR is highly misleading because they ignore **when** each cash flow took place.

XIRR (Extended Internal Rate of Return): This calculates the single annualized rate of return that matches the present value of all irregular cash flows (both buys and sells/valuations) to zero. It is the only mathematically correct metric to assess the compounding power of real-world portfolios with periodic additions or withdrawals.

How Inflation-Adjusted XIRR is Computed

Just as nominal XIRR represents your nominal compound return, **Real XIRR** represents the rate at which your actual purchasing power grew.

To calculate it, we discount each transaction cash flow to the initial investment date using the inflation rate:

C'_k = C_k / (1 + inflation)^((d_k - d_1)/365)
Then we run the XIRR numerical solver on these discounted cash flows. This is mathematically identical to the Fisher Equation:
Real XIRR = (1 + Nominal XIRR) / (1 + Inflation) - 1
Real XIRR reveals whether your active portfolio allocation beats inflation, or if your gains are largely an illusion.