Traditional Investing & Portfolio Theory

What is XIRR and how is it used for portfolio returns?

XIRR (extended internal rate of return) is the annualised return of a portfolio that accounts for multiple cash flows entering or leaving at irregular dates. Unlike CAGR, which assumes a single investment and a single exit, XIRR handles SIP contributions, top-ups, and partial withdrawals on the actual dates they occurred. For example, twelve uneven monthly investments and one redemption are all weighted by their exact timing. This makes XIRR the standard measure for judging the true return on a portfolio built over time. Past XIRR describes history, not future performance.

Crypto investments are subject to market risk and volatility. Past performance is not indicative of future returns. This is general information, not investment advice — consider your own circumstances or consult a qualified adviser before investing.