CAGR & XIRR Calculator
Calculate CAGR for start/end values and estimate XIRR for irregular dated cash flows using a 365-day discounted cash-flow method.
Calculate CAGR and XIRR
Use CAGR for simple start-to-end growth and XIRR when cash flows occur on irregular dates.
CAGR
XIRR from irregular cash flows
Enter one ISO date and one cash flow per line: YYYY-MM-DD, amount. Investments/outflows should be negative; receipts/inflows positive.
CAGR versus XIRR: which growth rate should you use?
CAGR is appropriate when you only need the constant annual growth rate connecting one starting value to one ending value over a known number of years. XIRR is more appropriate when money moves in and out on irregular dates.
CAGR formula
CAGR = (ending value ÷ starting value)1/years − 1. CAGR smooths the path into one annual rate, so it does not describe volatility between the start and end dates.
How this XIRR calculator works
The XIRR engine discounts each cash flow according to the number of days from the earliest date and searches for a rate that makes net present value approximately zero. Microsoft documents XIRR as an annualized internal rate of return for irregular cash flows using a 365-day year and requiring at least one positive and one negative cash flow. Microsoft XIRR reference.
Interpretation and limitations
XIRR can be misleading when a cash-flow series has more than one mathematical solution, and it should not be treated as a forecast. CAGR and XIRR are historical/analytical measures; neither accounts for risk, taxes, fees or inflation unless those effects are included in the cash flows themselves.
Input sign convention
Enter investments, purchases and other cash outflows as negative values. Enter distributions, sale proceeds and other inflows as positive values. Use actual dates for irregular flows.