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IRR / XIRR Calculator
Find the true annualised return on any investment — SIP, LIC / insurance policy, or a custom series of cash flows. Computes XIRR (Extended Internal Rate of Return) instantly in your browser using Newton-Raphson iteration. No data leaves your device.
Reviewed by Harun Raaj, CA — ICAI Membership No. 238303 · Firm Reg. 19027S · Updated July 2026
How It Works
What is XIRR?
XIRR (Extended Internal Rate of Return) is the discount rate that makes the net present value (NPV) of a series of cash flows equal to zero, accounting for the exact dates of each cash flow. Unlike simple IRR, XIRR handles irregular intervals — making it the correct metric for SIPs, insurance policies, and any real-world investment.
Why IRR matters for insurance policies
Insurance companies quote "guaranteed maturity amounts" without disclosing the implied rate of return. A policy paying ₹50,000/year for 20 years and returning ₹15 lakh at maturity sounds attractive — but the XIRR is just ~4.8%. A plain FD or PPF would give more with far less complexity.
XIRR vs CAGR vs Absolute Returns
CAGR measures the compound annual growth of a lump sum. Absolute return is the total gain as a percentage of cost. XIRR is superior for any investment with multiple cash flows over time because it accounts for both the timing and magnitude of each payment — including irregular SIPs, bonus payouts, or partial withdrawals.
Benchmark rates (as of 2025–26)
Savings account: ~3.5% p.a. | SBI FD (1 year): 6.5% p.a. | PPF: 7.1% p.a. (tax-free, Section 80C eligible) | Nifty 50 index (15-year average): ~12% p.a. Any guaranteed investment returning less than PPF should be scrutinised — it would need to offer superior liquidity, tax benefit, or insurance cover to justify the trade-off.
Frequently Asked Questions
What is a good IRR for an investment in India?+
A good IRR depends on the risk profile. For guaranteed/debt instruments, beating PPF (7.1% tax-free) is the minimum bar. For equity or growth investments, 12%+ (Nifty 50 long-run average) is a reasonable benchmark. Any "guaranteed" product returning less than 7% needs careful scrutiny.
What is the IRR of a typical LIC policy?+
Most traditional LIC endowment and money-back plans yield an XIRR of 4–5.5% — comparable to or below a bank FD. The guaranteed additions and bonuses sound large but are spread over 20–25 years, resulting in a poor annualised return. Term plans + PPF/index funds typically generate more wealth.
Can I use this to calculate mutual fund SIP returns?+
Yes. Enter the start date, monthly SIP amount, number of years invested, and the current portfolio value. The calculator generates the exact monthly cash flow schedule and runs XIRR to give you the annualised return — the same method used by AMFI and fund fact sheets.
What is the difference between IRR and XIRR in Excel?+
Excel IRR assumes equal time intervals between cash flows. Excel XIRR accepts actual dates and handles irregular intervals. For SIPs and insurance premiums where payment dates matter, XIRR is always more accurate. This calculator uses the XIRR algorithm (Newton-Raphson iteration).
Why does my XIRR show an error?+
XIRR requires at least one positive cash flow (money received) and one negative cash flow (money invested). If all cash flows are the same sign, or if the algorithm does not converge (extremely high/low rates), the calculator returns an error. Double-check that your maturity/return value is a positive number and your investments are entered as positive numbers.
Unsure if your insurance policy is worth keeping?
Our CAs can review your full portfolio — insurance policies, SIPs, PPF, FDs — and advise on surrender vs. continue decisions, tax implications, and rebalancing strategy.
Talk to a CA →Statutory disclaimer: This calculator provides XIRR estimates for illustrative purposes only. Results are based on the cash flows and dates you enter and do not account for taxation, surrender charges, mortality charges, admin fees, inflation, or investment risk. Insurance policy comparisons are indicative and not a solicitation to surrender any policy. Harun Raaj & Associates recommends consulting a SEBI-registered investment adviser or qualified CA before making financial decisions. CA registration: Harun Raaj & Associates, ICAI.