Excel 2013 provides the DATE and XIRR functions, which derive the final annual interest rate from a series of payments on known dates.

Excel's built-in XIRR function allows investors to input cash flows and their respective dates to get an accurate rate of return.

You can calculate the XIRR in mutual funds or investment through formula in excel, which is “=XIRR (values, dates, guess).

But Microsoft Excel makes it easy. Using the Extended Internal Rate of Return (XIRR) function, you can calculate returns from any investment where there are multiple inflows or outflows.

XIRR is effective for calculating returns with irregular cash flows in mutual funds, while CAGR is suitable for steady investments, offering a straightforward measure of annual growth over time.

XIRR is better for calculating returns on mutual funds with irregular cash flows, while CAGR is suitable for investments with regular cash flows.