XIRR Full Form - What does XIRR stand for?
XIRR stands for
Extended Internal Rate of Return
Extended Internal Rate of Return (XIRR) is the annualised return calculated for a series of cash flows that do not occur at equal intervals, using the actual date of every transaction. Standard IRR assumes each flow is spaced evenly, which fits a hypothetical annual schedule but not a real SIP, a partial redemption or a top-up made on arbitrary dates. XIRR solves for the rate that makes the net present value of all dated flows, discounted from each transaction date to a chosen start date, equal to zero, and spreadsheet functions implement it with a guess value iterated to convergence. This makes XIRR the correct performance measure for mutual fund portfolios, retirement withdrawals, insurance payouts with irregular premiums and any investment where money moves in and out over time. Because each rupee's time in the market is respected, XIRR can differ materially from simple percentage returns, especially over long horizons with several large flows. Investors comparing schemes, advisors reporting client returns and fund factsheets increasingly quote XIRR instead of average or point-to-point returns for this reason.
What does XIRR stand for?
XIRR is read as Extended Internal Rate of Return.
Where is XIRR used?
Investment abbreviations show up in contract notes, portfolio statements and market reports. Knowing what each term stands for makes it easier to track returns and risk.
Related Calculators
Related Full Forms
Frequently Asked Questions
What does XIRR stand for?+
XIRR stands for Extended Internal Rate of Return.
What is XIRR?+
Extended Internal Rate of Return (XIRR) is the annualised return calculated for a series of cash flows that do not occur at equal intervals, using the actual date of every transaction. Standard IRR assumes each flow is spaced evenly, which fits a hypothetical annual schedule but not a real SIP, a partial redemption or a top-up made on arbitrary dates. XIRR solves for the rate that makes the net present value of all dated flows, discounted from each transaction date to a chosen start date, equal to zero, and spreadsheet functions implement it with a guess value iterated to convergence. This makes XIRR the correct performance measure for mutual fund portfolios, retirement withdrawals, insurance payouts with irregular premiums and any investment where money moves in and out over time. Because each rupee's time in the market is respected, XIRR can differ materially from simple percentage returns, especially over long horizons with several large flows. Investors comparing schemes, advisors reporting client returns and fund factsheets increasingly quote XIRR instead of average or point-to-point returns for this reason.
What is XIRR used for?+
XIRR (Extended Internal Rate of Return) belongs to the Investments & Markets category. Investment abbreviations show up in contract notes, portfolio statements and market reports. Knowing what each term stands for makes it easier to track returns and risk.
Which category does XIRR belong to?+
XIRR is filed under Investments & Markets, one of the 10 categories in our directory of 1538 full forms.