XIRR is the Excel/Google Sheets function — and the underlying concept — for calculating IRR when cash flows happen at irregular, real-calendar dates rather than at uniform intervals. "X" stands for "extended" — extended to arbitrary date spacing.
In Excel or Sheets: =XIRR(values, dates)
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values = array of cash flows (negative for money out, positive for money in) dates = corresponding transaction dates
When to use which metric
| Metric | When to use | |---|---| | CAGR | Single investment, single exit | | IRR | Multiple cash flows at regular intervals | | XIRR | Multiple cash flows at specific real dates |
For most retail investors who bought unlisted shares on specific dates and will exit at an IPO, XIRR gives the most accurate return figure.
Why it matters
XIRR is how mutual funds report SIP returns. It is also the standard metric for PMS and AIF investments in unlisted companies — any multi-date private investment return should be expressed as XIRR.
Example: Invested ₹2L on 01-Jan-2022 and ₹1L on 15-Jun-2022; exited at ₹6L on 10-Mar-2025. XIRR ≈ 43% annualised.