📊 Know Your True Investment Performance

💡 XIRR (Extended Internal Rate of Return) Made Simple

What is XIRR?
XIRR calculates the annualized return for a series of irregular cash flows. Useful for SIPs with varying amounts, mutual fund withdrawals, or uneven investments.

📊 Conceptual Formula
Σ (Ci / (1 + r)^(di/365)) = 0
- Ci = Cash flow at date i (negative = outflow, positive = inflow)
- di = Days from the first cash flow
- r = XIRR (annualized rate of return)

🔄 How It Works
- Accounts for exact dates of cash flows
- Solves for rate r that sets net present value (NPV) = 0
- Ideal for irregular investments or withdrawals

✅ Why XIRR is Useful
- True annualized return, even for uneven cash flows
- Compare different investment options fairly
- Helps track real performance of your portfolio

💡 Pro Tips
- Include all cash flows (inflows & outflows) accurately
- Use correct dates to get precise results
- Adjust initial guess if calculator fails to converge