XIRR (Extended Internal Rate of Return) measures your actual annualized return by considering cash flows over time — including top-ups, withdrawals, and partial exits.

In simpler terms:

• CAGR assumes a single lump-sum investment.
• XIRR reflects how real investors add and withdraw funds over months or years.

If you invest periodically or make SIP-like contributions, XIRR is the most accurate way to gauge performance.