XIRR Calculator
XIRR is evaluated from Date 1, Cash Flow 1 and Date 2. The calculation reports XIRR, Total Invested and Total Returned.
Results
About the XIRR Calculator
The calculator uses a custom php logic configuration. Each reported value is read as a direct evaluation of the stored rules with the declared field formats and units.
Formula basis:
XIRR solves for `r` in:
Sigma [CF_i / (1 + r)^(d_i / 365)] = 0
Where d_i = number of days from the first cash flow date to the i-th date
This is solved iteratively using Newton-Raphson method. The result is the annualized discount rate that zeros out the NPV of all cash flows.
Interpret the outputs in the order shown by the result fields. Optional inputs affect only the outputs that depend on those variables.
Formula & How It Works
The calculation applies the following relations exactly as recorded in the metadata: XIRR solves for `r` in: Sigma [CF_i / (1 + r)^(d_i / 365)] = 0 Where d_i = number of days from the first cash flow date to the i-th date This is solved iteratively using Newton-Raphson method. The result is the annualized discount rate that zeros out the NPV of all cash flows. Each output field is produced by substituting the supplied inputs into the relevant relation and then applying the declared rounding or text format.
Worked Examples
Example 1: Real Estate Rental Property
Inputs
With Date 1 = 2021-03-15, Cash Flow 1 = -350,000, Date 2 = 2021-09-15 and Cash Flow 2 = 12,000 as the stated inputs, the result is XIRR = 12.64%, Total Invested = $350,000 and Total Returned = $490,000. Each value corresponds to the declared output fields.
Example 2: Irregular Stock Investments
Inputs
With Date 1 = 2020-01-10, Cash Flow 1 = -10,000, Date 2 = 2020-07-15 and Cash Flow 2 = -5,000 as the stated inputs, the result is XIRR = 10.86%, Total Invested = $20,000 and Total Returned = $28,500. Each value corresponds to the declared output fields.
Example 3: Business Investment with Dividends
Inputs
With Date 1 = 2022-06-01, Cash Flow 1 = -50,000, Date 2 = 2023-02-01 and Cash Flow 2 = 8,000 as the stated inputs, the result is XIRR = 34.96%, Total Invested = $50,000 and Total Returned = $87,000. Each value corresponds to the declared output fields.
Example 4: Simple 2-Date Comparison
Inputs
With Date 1 = 2021-01-01, Cash Flow 1 = -25,000, Date 2 = 2024-01-01 and Cash Flow 2 = 35,000 as the stated inputs, the result is XIRR = 21.74%, Total Invested = $25,000 and Total Returned = $51,000. Each value corresponds to the declared output fields.
Common Use Cases
- Calculate annual return on a private equity or real estate investment
- Find the true return rate for irregular SIP or lump sum investments
- Evaluate a business investment with non-uniform cash flows