Rates & growth
Annualized-return calculator (simplified XIRR)
Staggered contributions each compound for a different span. The XIRR measure finds the monthly rate that grows all of them into today's value, annualized.
Annualized return (XIRR)
+8.92%
Solves the monthly rate growing all lots into today's value, compounded to 12 months.
Total invested
80,000
Current value
92,000
Total P&L
+12,000.00
P&L %
+15.00%
Monthly IRR
+0.715%
Why not just divide total P&L by years
P&L ÷ principal ÷ years assumes all money worked the whole time — with staggered buys that misreads badly. XIRR compounds each lot for its own holding months, solving for the monthly rate r where Σ amount×(1+r)^months equals the current value; annualized = (1+r)¹² − 1.
With a single lot it reduces to the familiar (value ÷ principal)^(12 ÷ months) − 1.
Frequently asked
How does XIRR differ from a plain annualization?
A plain annualization assumes one sum held the whole span; XIRR accepts any number of lots at different times and credits each for its actual holding period — the right lens for DCA and laddered buys.
What goes in 'months held'?
Whole months since that contribution, decimals allowed (e.g. 18.5). For money added last month, a value under 1 works.
What does a negative annualized rate mean?
The lots are underwater on a compounded basis — consistent with negative total P&L, expressed as a yearly pace.
Is this the same as Excel's XIRR?
Same idea (IRR of discounted flows); simplified here with months instead of exact dates, so expect small differences.
Results are an internal-rate-of-return estimate over months held (XIRR approximation). Estimates only, not investment advice.