XIRR is the yearly return that fits a series of deposits and withdrawals made on specific, unevenly spaced dates. It is the internal rate of return (IRR) adapted to real dates: money you put in counts as negative, money you take out (and the final value of what you still hold) counts as positive, and XIRR finds the one annual rate that makes all those dated amounts add up to zero once they are all brought back to the same date. The name comes from the spreadsheet function of the same name. Because every deposit is weighted by how long it was invested, XIRR is a money-weighted return, and it answers the question that a plain percentage cannot: what yearly rate did my money actually earn?
Worked example
Say you put $1,000 into a fund on 1 January 2025 and another $1,000 on 1 January 2026, and on 1 January 2027 the whole pot is worth $2,310. As signed amounts that is -$1,000, -$1,000 and +$2,310 on three dates, each 365 days apart. The first $1,000 was invested for two years, the second for one. The XIRR is the single yearly rate r that makes it work: $1,000 × (1 + r)² + $1,000 × (1 + r) = $2,310. With r = 10%, that is $1,000 × 1.21 + $1,000 × 1.10 = $1,210 + $1,100 = $2,310. So the XIRR is 10% a year. Dividing the $310 gain by the $2,000 deposited would give 15.5%, and spreading that over two years would give a figure that ignores that half the money was in for only one.
Why it matters
XIRR matters whenever money goes in or out at different times, which is how most people actually invest: a monthly plan, an extra deposit after a bonus, a withdrawal for a house. A simple gain percentage or the compound annual growth rate (CAGR) assumes one amount put in on day one and left alone, so it misreads these cases. XIRR gives one yearly figure you can compare with a savings rate or with another investment. It has limits. It measures your result, including the timing of your own deposits, so it is not a clean score for the fund or manager (that is the job of the time-weighted return). It can also give odd results over very short periods, because a few weeks of gain is scaled up to a year, and it needs at least one outflow and one inflow to work. Treat it as one view of your own money, not a promise about the future.
Frequently asked questions
IRR assumes the cash flows come at equal intervals, such as once a year. XIRR takes the actual date of each deposit and withdrawal, so it works for a plan with irregular dates, such as deposits made on whatever days suited you, or a one-off top-up.
CAGR is the yearly growth rate between a start value and an end value, with nothing added or removed in between. XIRR also handles money you add or take out along the way, so it is the better yearly figure once you have made several deposits.
Use the XIRR function with two lists: the amounts (money you put in as negative numbers, money you take out and the current value as positive numbers) and the matching dates. The result is a yearly rate, using a 365-day year.
Related terms
Built & maintained by Worthmap · Last updated November 1, 2026
Educational use only. This tool provides estimates for informational purposes and does not constitute financial, investment, tax, or legal advice. Results are based on inputs you provide and mathematical models, they do not guarantee future performance. Always consult a qualified financial adviser before making investment decisions.