Money-weighted annual return (XIRR)

Also called: irr, return, performance, beating the market

The steady yearly growth rate that would turn your exact deposits and withdrawals, on their exact dates, into today's value. The fairest single answer to 'how have I done?' when money went in and out at different times.

Formula

Find r so that Σ cash flow ÷ (1 + r)^(years since first deposit) = 0

Worked example

1. Example: put in £1,000 on 1 Jan 2025 and £1,000 on 1 Jul 2025; worth £2,150 on 1 Jan 2026.
2. Try rates until the deposits (money out of your pocket) and today's value (money back) balance.
3. −1,000 ÷ (1 + r)^0 − 1,000 ÷ (1 + r)^0.5 + 2,150 ÷ (1 + r)^1 = 0 → r ≈ 10.1%

Result: ≈ +10.1% a year

How to read it

Compare it with the same deposits put into an index fund on the same days. That's what the Performance page does.

See it with real numbers: Performance → (free account)