How to use the xirr calculator
- List each cash flow with its date and amount. Enter money you put in as a negative number and money you get back as a positive number.
- Rows can be in any order, and you can add up to 60 of them. Include the final value of an investment as a positive amount on the date you value it.
- Read the annualized return, the money multiple, the net gain and the days between the first and last flow.
- Use the table at the bottom to see each amount discounted to the first date at the solved rate. The values add to zero, which is the check.
Formula
Sum of amount / (1 + r)^((date - first date) / 365) = 0
The rate r is the annual return
Money multiple = total received / total paid in
The rate is found by bisection on the net present value, between a loss of nearly 100% and a very large gain. Days are counted exactly, and a year is 365 days.
Four dated cash flows
You put in $10,000 on 2024-01-01, then receive $2,500 on 2024-07-01, $3,000 on 2025-03-15 and $6,500 on 2026-01-01. The dates are 0, 182, 439 and 731 days from the first, and you received $12,000 in total, a multiple of 1.2.
The annual rate that makes the discounted amounts add to zero is 13.2414%. Check it: 2,500 / 1.132414^(182/365) + 3,000 / 1.132414^(439/365) + 6,500 / 1.132414^(731/365) equals 10,000 to within rounding. The money multiple of 1.2 looks like 20%, but the money came back over two years, so the yearly rate is lower than 20% and higher than 10%.
Why dates matter
A plain average return ignores when the money moves. Getting $2,500 back after six months is worth more than getting it back after two years, and XIRR accounts for that by discounting each amount by the exact number of days. It is the same idea as the internal rate of return, but with real dates instead of equal periods.
For equally spaced flows, the IRR and NPV Calculator is simpler. To measure how well a manager did without the effect of when you added money, use the Time-Weighted Return Calculator instead.
Limits of a single rate
Some patterns of cash flows have more than one rate that makes them balance, or none at all. This usually happens when the sign of the flows changes more than once. The calculator looks for the rate between a loss of nearly 100% and a very large gain and tells you when it finds none. All flows need at least one negative and one positive amount.
XIRR also assumes each flow could be reinvested at the same rate, which is rarely true. Treat the result as a way to summarize a history of dated flows, and compare it with the Investment Return Comparison Calculator when you are weighing two plans.
Assumptions and limits
- A year is 365 days, and every amount is discounted from its date back to the earliest date.
- Amounts are in one currency and there are no taxes or fees beyond what you enter.
- The first date in time is treated as the starting point even if it is not the first row you typed.
- Results are a measure of the numbers you type and not a forecast of future returns.
Frequently asked questions
How is XIRR different from IRR?
IRR assumes the cash flows are equally spaced, such as one a year. XIRR uses the actual date of each flow, so it works for deposits and payouts made at any time. If flows are evenly spaced the two give nearly the same answer.
Which amounts should be negative?
Money leaving your pocket is negative, such as a purchase or a deposit. Money coming back is positive, such as a dividend, a sale or the current value of what you still hold. Reversing every sign gives the same rate.
Why do I see a message that no rate fits?
Without at least one negative and one positive amount there is no break-even rate. Some unusual patterns also have no real answer. Check the signs and the dates first.
Does it match a spreadsheet XIRR function?
Spreadsheets use the same day-count formula with a 365 day year, so the results agree to many decimals when the inputs are the same. A spreadsheet may refuse to run if the first amount is not negative, and this page does not.