📊 XIRR
True annualized return on irregular cash flows.
What it does
Calculates the true annualized return of investments with irregular cash flows — deposits and withdrawals of any size at any dates.
When to use it
Use it to measure the real performance of a mutual fund, SIP with skipped months, or a portfolio with mixed purchases and sales. CAGR alone misleads when cash flows are uneven.
Assumptions
- The first listed cash flow should be an outflow (money invested).
- Returns are annualized assuming reinvestment at the computed rate.
- Past performance measured this way is not a promise of future returns.
Inputs
Pro tip
XIRR is the fair number to compare against your benchmark or an index. A portfolio's XIRR can look worse than a simple SIP CAGR when you added money before a dip — that timing effect is real, and XIRR captures it honestly.