XIRR

XIRR stands for Extended Internal Rate of Return.

It is the annualized return on a series of irregular cash flows, such as multiple SIP instalments and a final redemption. XIRR assigns each cash flow an accurate date and computes the single discount rate that makes the net present value zero, making it ideal for measuring the actual return of a SIP or STP portfolio. XIRR can be calculated in Microsoft Excel, Google Sheets, or any AMFI-registered distributor's portfolio tracker.