Skip to main content
Financial Terms

Extended Internal Rate of Return (XIRR)

This method takes into account the time value of money and assumes that the cash flows from an investment are reinvested at the same rate.

Let's discuss the concept of Extended Internal Rate of Return, an important tool for estimating investment returns. This method is particularly useful when there are multiple transactions happening at different times, making it difficult to calculate a simple rate of return. EIRR takes into account the time value of money, recognizing that cash flows are reinvested at the same rate. This allows for a more accurate assessment of investment performance.

Related terms

GDP

Understand the meaning and definition of GDP in the context of stock market, trading, and investments.

MORE
SLR

Understand the meaning and definition of SLR in the context of stock market, trading, and investments.

MORE
Fiscal Deficit

Understand the meaning and definition of Fiscal Deficit in the context of stock market, trading, and investments.

MORE
Index

Understand the meaning and definition of Index in the context of stock market, trading, and investments.

MORE

Open Free Demat Account!

Join our 3.8 Cr+ happy customers

+91
Explore other categories
Enjoy Zero Brokerage on Equity Delivery
10 Cr+DOWNLOADS

Enjoy Zero Brokerage On Stock Investments

Get the link to download the App

Scan this QR code to download the app
Get it on Google PlayDownload on the App Store