Financial Calculators
SIP Return Calculator
Your statement shows a gain. This shows the annual rate that gain actually represents.
Annualised return (XIRR)
12.44%
on ₹6,00,000 invested over 5 years
- Total invested
- ₹6,00,000
- Gain or loss
- ₹2,20,000
- Absolute return
- 36.67%
Each instalment is treated as a separate cash flow at the start of its month, which is what XIRR does. Absolute return divides the gain by the total invested and ignores time, so it always looks larger than the annualised figure for anything beyond a year.
These figures are for illustrative purposes only and are not investment advice. Please consult your investment adviser for investment related advice.
Why absolute return flatters a SIP
A SIP puts money in every month, so the first instalment has worked for years while the latest has worked for days. Dividing the total gain by the total invested ignores that and produces a number that grows with time regardless of how well the fund did. XIRR treats every instalment as its own cash flow, dated, and finds the single annual rate that turns all of them into today's value.
That is the number to compare against the fund's benchmark, against an FD, and against the return you assumed when you set the goal.
How the rate is found
Find i such that:\nSum over instalments of SIP x (1 + i)^(months remaining) = current value\nAnnualised = (1 + i)^12 - 1Worked example: Rs 10,000 a month for 60 months is Rs 6,00,000 invested. If the holding is worth Rs 8,20,000 today, the absolute return is 36.67% but the annualised return (XIRR) is 12.44% a year.
Frequently asked questions
Is this the same as the XIRR on my statement?
Yes, for a regular monthly SIP with no missed or extra instalments. If you paused, topped up or redeemed part-way, the platform's XIRR, which uses actual dates, will differ slightly.
Why is the annualised figure lower than the absolute one?
Because the absolute figure counts the full gain as if all the money had been invested from day one. The annualised figure spreads it over the actual time each rupee spent invested.
What is a good XIRR for an equity SIP?
Compare it with the fund's benchmark index over the same period rather than a fixed number. Diversified equity has historically delivered 10-14% over long periods, with wide swings in any given five-year window.
Can the result be negative?
Yes. If the current value is below what you invested the solver returns a negative annual rate. It is normal for young SIPs in a falling market and rarely a reason to stop.
Know the real return, then decide.
We review SIP portfolios against their benchmarks and tell you plainly which ones have earned their place.