Three ways to measure a return
Absolute return tells you how much your money grew in total. CAGR tells you how fast it grew each year. XIRR does the same for a portfolio where money went in at different times. Together they show whether an investment has really done well, and let you compare a fund with an FD, gold or anything else on equal terms.
Add your investments
For each one, the amount invested, its value today and how long you have held it.
See each one on its own
Absolute return, CAGR and XIRR for every investment, side by side.
See the whole portfolio
The combined return across everything, with XIRR accounting for when each rupee went in.
How the returns are calculated
Absolute return
The total growth, ignoring time. A 50% return over 2 years and over 10 years look the same here, which is why it should not be used alone.
CAGR (compound annual growth rate)
The steady yearly rate at which the investment grew. For the portfolio, the calculator uses total value over total invested, spread across the average time your money was invested (weighted by amount).
XIRR (extended internal rate of return)
The yearly rate that balances every amount invested against today’s value, each on its own date. For a single investment it is the same as CAGR. For a portfolio built up over time it is the most accurate measure, and it matches the XIRR function in Excel and Google Sheets.
Frequently asked questions
What is the difference between absolute return, CAGR and XIRR?
Absolute return is total growth, ignoring time. CAGR is the yearly growth rate of a single investment. XIRR is the yearly growth rate when money was invested at different times, such as a SIP or a portfolio built up over years.
Why are CAGR and XIRR the same for each investment?
For one amount invested on one date, XIRR and CAGR are mathematically identical. They differ only for the portfolio, where your investments started at different times.
Which return should I look at for my portfolio?
XIRR. It accounts for when each investment was made. The portfolio CAGR is a simpler estimate that uses an average holding period.
What is a good CAGR for mutual funds?
Over long periods, diversified equity funds in India have typically delivered in the range of 10% to 15% a year, but this varies widely by fund and period. Compare a fund with its benchmark and category over the same years, not with a fixed number.
Can I use this for a SIP?
Yes. Add each year of instalments as a separate investment, with its total amount, its value today and how long ago it was invested. The portfolio XIRR then gives you the return on the whole SIP.
Why does a return look very high for a short holding?
CAGR and XIRR are yearly rates. A 10% gain in 3 months becomes about 46% a year when annualised. Returns on holdings under a year should be read with care.