What is XIRR on Coin?
XIRR (Extended Internal Rate of Return) calculates the annualised return on your investments, accounting for the timing and amounts of multiple cash flows.
When you calculate returns on investments over multiple years with various transactions, absolute returns alone may not give you accurate results because they ignore the investment time period. For greater accuracy, especially when you make multiple investments at different times such as Systematic Investment Plans (SIPs), you can use XIRR.
XIRR aggregates multiple Compound Annual Growth Rates (CAGRs) and is particularly valuable when calculating the performance of investments with multiple transaction points and durations beyond one year.
How XIRR differs from absolute returns
While absolute returns show you the total percentage gain or loss, they ignore when you made your investments. XIRR provides a more accurate picture by considering:
- The exact dates of your investments
- The amounts you invested at each point
- The time value of money
This makes XIRR essential for evaluating investments where you add money regularly over time, such as SIP investments in mutual funds.
How to check XIRR on Coin?
You can check the portfolio XIRR on Coin by following these steps:
Coin app
- Tap on View.
Coin web
- Tap on View portfolio XIRR.
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