XIRR

XIRR is a variation of IRR used when cash flows happen on irregular dates rather than evenly spaced periods. Instead of assuming equal spacing, it uses the actual date of each cash flow to calculate a more precise annualized return.

Example

The same deal as IRR, but with distributions landing on irregular dates like March 15 or September 1 instead of clean year-end marks. XIRR uses those actual dates for a more precise annualized return.

Formula

XIRR = the discount rate at which the Net Present Value of all cash flows equals zero, using each cash flow's actual date

Excel Formula:

• B2:B7 = Cash flow amounts
• C2:C7 = Actual dates of each cash flow