| Date | Cash Flow | Action |
|---|---|---|
XIRR Result:
Absolute Percentage:
For other Financial Tools
What is XIRR and Why it’s Used ?
XIRR, also known as Extended Internal Rate of Return, is a powerful financial metric utilized to gauge the performance of investments with diverse cash flows happening at varying intervals. Unlike the conventional Internal Rate of Return (IRR) method, which assumes cash flows to be evenly spaced, XIRR is tailored to handle irregular cash flows. This adaptability makes XIRR an invaluable tool for evaluating investments, loans, and financial projects in a comprehensive manner.
What sets XIRR apart is its ability to consider both the timing and the magnitude of these cash flows, offering a more precise assessment of an investment’s profitability. This, in turn, empowers investors and financial decision-makers to make well-informed choices regarding their investment portfolios. In practice, XIRR is widely embraced across finance, accounting, and investment analysis sectors to calculate the annualized return rate for intricate financial transactions, making it an indispensable tool in the world of financial management.
User Guide for MoneyInvest.in XIRR Calculator
1. Access the Calculator: Visit MoneyInvest.in and navigate to the XIRR Calculator.
2. Enter Cashflows: Input investment cashflows with dates and amounts. Use negative values for investments and positive for redemptions or a sign convention vice versa.
3. Calculate XIRR: Click “Calculate XIRR” to get the annualized return rate.
One standout feature in using our XIRR calculator is use can add multiple rows and also delete the extra rows that is not required.
Example:
| Date | Cash Flows |
| 20 September 2022 | -1000 |
| 20 October 2022 | -800 |
| 20 November 2022 | -300 |
| 20 December 2022 | 200 |
| 20 January 2023 | 2100 |
| XIRR (%) | 39.69% |
Tip: Use precise dates for accurate results.
Note: This calculator can also be used in case or calculating IRR using appropriate dates. Otherwise you can use IRR calculator.