An Annualised Return, Date-Aware
XIRR stands for the internal rate of return applied to cash flows on specific dates. In its full form (as used for something like a SIP with many monthly instalments), it can account for many different cash flows spread across many different dates. On QuantLogIQ's chart tool, XIRR is used in its simplest form: one entry point and one exit point, which makes it work out very similarly to CAGR for that specific two-point comparison.
How to Calculate It
Click the XIRR button on any chart, then click your entry point and exit point exactly as you would for CAGR. QuantLogIQ finds the annualised rate that reconciles the entry price on the entry date with the exit price on the exit date, and displays it as a percentage.
XIRR vs CAGR — What's the Difference Here?
For a simple two-point comparison like this, XIRR and CAGR will typically give you the same or a very similar answer — both are answering "what steady annual rate explains the change from entry to exit?" The distinction matters more in scenarios with multiple cash flows on different dates (like recurring investments), which this two-click chart tool is not calculating.
Where Else You'll See It
An XIRR figure also appears inside the In-Out backtest result, summarising the annualised return of the entire simulated trade sequence — not just a single entry and exit.