|Definition||:||eXtended Internal Rate of Return|
|Category||:||Business » Business Terms|
What does XIRR mean?
eXtended Internal Rate of Return (XIRR) is a measure of return which is used when multiple investments have been made at different points of time in a financial instrument like mutual funds. XIRR and Compound Annual Growth Rate (CAGR) are not the same. XIRR considered every cash inflow and outflow while calculating the return, while CAGR usually calculates point to point returns and ignores the cash inflows and outflows in an investment period.