Portfolio IRR (money-weighted return) calculator
IRR is the annual return that equates the present value of your portfolio with all your contributions on their actual dates. It's the only correct measure when you've contributed irregularly: a 30% gain on contributions could be a 6% or a 15% IRR depending on when the money went in.
Formula: Solve for the rate i that satisfies: current value = P0 × (1 + i)^n + PMT × ((1 + i)^n − 1) / i, solved by successive approximation.
Portfolio IRR calculator
IRR weighs when each dollar went in: it's the real return of your portfolio, not just the raw gain percentage.
Estimate calculated in your browser. No data is sent or stored.
How to use it
- Initial contribution. The amount you opened the portfolio with.
- Average monthly contribution. What you've added on a regular basis.
- Years invested. From your first contribution to today.
- Current value. The portfolio's market value right now.
IRR versus simple return
Simple return divides the gain by contributions and doesn't care whether the money has been working for ten years or ten months. IRR does, which is why professional reports use it — and why netclariq calculates XIRR automatically from your actual transactions.
- Simple return: useful for the absolute result
- IRR: comparable to indexes and other products
- With regular contributions, IRR often beats simple return
How to compare against a benchmark
Compare your IRR with the annualized return of a benchmark index over the same period, net of fees and with dividends reinvested. If your IRR consistently lags the index, the issue is usually costs or the timing of your entries and exits.
Frequently asked questions
- What's the difference between IRR and XIRR?
- XIRR is IRR applied to cash flows on irregular dates. This calculator assumes regular monthly contributions; netclariq itself uses XIRR with the exact dates of your transactions.
- Does IRR include dividends?
- Yes, as long as the current value reflects them (if reinvested) or you count them as a cash flow when received.