Formula & Calculation Methodology
Uses an iterative numerical method (Newton-Raphson) to find the rate (r) where the Net Present Value (NPV) of all cash flows equals zero.
Calculate the XIRR for your irregular cash flows. Perfect for calculating exact annualized returns of mutual fund SIPs and sporadic investments.
Uses an iterative numerical method (Newton-Raphson) to find the rate (r) where the Net Present Value (NPV) of all cash flows equals zero.
CAGR is only for a single lumpsum investment. XIRR is needed when you make multiple investments or withdrawals at different dates (like SIPs).