This SIP CAGR calculator finds the yearly return your investment actually earned. It has two modes. For a single lumpsum, give the starting value, today's value and the years, and it returns the CAGR. In SIP mode you enter the instalment, how many months you have paid and today's value, and it solves for XIRR, the proper yearly yardstick for staggered money.
Fund statements often show “absolute return”, a total percentage that ignores time. These yearly figures let you compare your investment fairly with a deposit or another fund.
At a glance
- CAGR(end ÷ start)^(1 ÷ years) − 1
- Lumpsum example₹1 lakh to ₹2 lakh in 5 years: 14.87%
- XIRRThe yearly rate that grows every SIP payment into today's value
- SIP example₹5,000 for 60 months, now ₹4 lakh: 11.45%
- Absolute return in that case33.33%, which is not a yearly figure
- UseJudge past performance, not predict the future
How the SIP CAGR calculator works for a lumpsum
CAGR, the compound annual growth rate, is the steady yearly rate that would turn your starting value into today's value. ₹1,00,000 that is now ₹2,00,000 after 5 years has a CAGR of (2)^(1/5) − 1 = 14.87%. ₹2,50,000 that became ₹4,00,000 in 4 years has a CAGR of 12.47%.
CAGR only works when there is one investment at the start. With money added in stages, CAGR on the total misleads, since the late instalments barely had time to grow. XIRR fixes that.
XIRR calculator for SIP
For a SIP, each instalment has its own start date. XIRR finds the single yearly rate that, applied to every instalment for the time it was invested, adds up to today's value. The calculator solves this by trial, the same way a spreadsheet's XIRR function does.
| Monthly SIP | Months | Invested | Value now | Absolute return | XIRR |
|---|---|---|---|---|---|
| ₹5,000 | 60 | ₹3 lakh | ₹4,00,000 | 33.33% | 11.45% |
| ₹10,000 | 84 | ₹8,40,000 | ₹15,00,000 | 78.57% | 16.27% |
A 33% absolute gain over 5 years sounds modest, yet it equals 11.45% a year, because on average the money was invested for only about half that time.
SIP XIRR in a spreadsheet
- List every SIP date in one column and the amount as a negative number next to it.
- Add today's date and today's value as a positive number at the end.
- Use =XIRR(amounts, dates).
This handles missed or changed instalments, which the calculator above assumes away. Your fund statement or consolidated account statement may already show XIRR for each holding.
CAGR calculator for SIP: common mistakes
- Using CAGR on a SIP: it understates the return, because it assumes all money went in on day one.
- Comparing absolute returns over different periods: 40% in 3 years and 40% in 6 years are very different.
- Ignoring dividends paid out: include them in the end value if you took them.
- Treating past XIRR as a forecast: it describes what happened, not what will.
Forward looking projections live on the SIP page and the lumpsum calculator.
What to compare your XIRR with
A fair comparison is a benchmark over the same dates: the fund's index, or a fixed deposit's rate for safer goals. An equity SIP's XIRR below a deposit rate over 5 or more years is a reason to review the fund, not necessarily to stop. Short periods swing wildly, so judge over at least 5 years. Fund costs are quantified on the expense ratio tool, and the interest rate calculator works the same idea for fixed income offers.
Frequently asked questions
What is the difference between CAGR and XIRR?
CAGR is the yearly return of a single lumpsum. XIRR is the yearly return when money goes in at different times, as in a SIP.
How do I calculate SIP CAGR?
For a SIP, use XIRR instead. Enter the monthly amount, the months and today's value in the calculator's SIP mode.
What is a good XIRR for a SIP?
Compare it with the fund's benchmark index over the same period. For equity funds, look at 5 years or more.
Why is my absolute return higher than my XIRR?
Absolute return is the total gain over the whole period. XIRR spreads it into a yearly rate, accounting for when each instalment went in.
Can I calculate XIRR in Excel?
Yes. List dates and amounts, with investments negative and today's value positive, and use the XIRR function.
Does this XIRR calculator for SIP handle missed instalments?
No. It assumes equal monthly instalments. For irregular payments, use a spreadsheet XIRR with actual dates.