Today most of the financial products we have available are quite complex products. These involve multiple deposits and multiple withdrawals, a simple SIP will involve multiple deposits and might involve more than one withdrawal.
In this scenario to get a clear picture of the returns you are getting on your investments you need to calculate XIRR. Extended Internal Rate of Return (XIRR) denotes the average annual rate of return for an investment that involves multiple, irregular transactions.
The following image shows how you can calculate XIRR using excel or any other spreadsheet.
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