If you invest different amounts on different dates — monthly SIP, bonus lump sum, partial redemption — CAGR alone misleads. XIRR (Extended Internal Rate of Return) is the standard measure for such cash flows.
XIRR vs CAGR
- CAGR — one start, one end value, fixed period
- XIRR — multiple deposits/withdrawals on actual dates
When you need XIRR
- SIP running 3+ years with current value
- STP from debt to equity
- Comparing two funds you invested differently
- Portfolio with ad-hoc top-ups
How to use results
XIRR is an annualized return assuming reinvestment. Compare funds over similar periods. Very short periods (<1 year) can show extreme XIRR — use longer horizon for decisions.
Enter each investment date and amount in Master Calc XIRR Calculator. Pair with CAGR Calculator for lump-sum holdings.
Disclaimer: Past XIRR does not guarantee future returns.