XIRR Calculator

XIRR Calculator

Understanding XIRR

The XIRR calculator helps you determine the annualized return rate of a series of cash flows occurring at irregular intervals.

Key Concepts:

  • Invested Amount: The amount of money initially invested.
  • Maturity Amount: The amount of money at the end of the investment period.
  • Frequency: The regularity with which investments are made (e.g., daily, monthly, quarterly, half yearly, or yearly).
  • Start Date: The date when the investment period begins.
  • Maturity Date: The date when the investment period ends.

How it Works:

The calculator estimates the annualized return rate based on the provided cash flows and their respective dates.

Calculation Formula:

XIRR is calculated using an iterative method, often involving numerical algorithms to solve for the rate that satisfies the following equation: