Calculator

Irregular Cash Flow Return

When money goes in and out at uneven times, a simple percentage gain says almost nothing. This finds the annualised rate that makes all those flows balance, which is the only honest way to compare an irregular investment against a regular one.

₹5,00,000
₹2,00,000
₹1,00,000
₹14,00,000
7 years

Annualised return

Annualised return:9.1%

Total put in
₹8,00,000
Absolute gain
₹6,00,000

What this assumes

Every calculator here states what it took for granted. A result whose assumptions are hidden is not worth much.

  • Contributions happen at the start of years 0, 1 and 3, and the value is received in the final year.
  • The rate returned is the one that discounts every flow back to zero.
  • No tax is deducted.

How to use it

  1. Enter what you put in and when.
  2. Enter what you received and in which year.
  3. Compare the annualised figure against what a plain SIP would have returned.

Illustrative only. Not a projection, not a guarantee, and not investment advice.

Common questions

Why can I not just divide the gain by what I put in?

Because money invested for seven years and money invested for two are not comparable. A simple percentage ignores time completely, which is why a policy that looks like it doubled your money can be a poor annualised return.

Is this the same as XIRR in a spreadsheet?

It is the same idea. A spreadsheet takes exact dates; this takes whole and part years, which is close enough for comparing options and easier to fill in.

A number is not a plan.

If this result raised a question, that is the useful part. Bring it in and we will work through what it means for your situation.