XIRR

Definition of XIRR

Calculates the internal rate of return of an investment based on a specified series of potentially irregularly spaced cash flows.

Sample Usage

XIRR(B2:B25,C2:C25)

XIRR({-4000,200,250,300},{DATE(2012,01,01),DATE(2012,06,23),DATE(2013,05,12),DATE(2014,02,09)},0.09)

Syntax

XIRR(cashflow_amounts, cashflow_dates, [rate_guess])

• cashflow_amounts - An array or range containing the income or payments associated with the investment.

  • cashflow_amounts must contain at least one negative and one positive cash flow to calculate rate of return.

• cashflow_dates - An array or range with dates corresponding to the cash flows in cashflow_amounts.

• rate_guess - [ OPTIONAL - 0.1 by default ] - An estimate for what the internal rate of return will be.

Notes

• If the days specified in cashflow_dates are at a regular interval, use IRR instead.

• Each cell in cashflow_amounts should be positive if it represents income from the perspective of the owner of the investment (e.g. coupons) or negative if it represents payments (e.g. loan repayment).

• XNPV will return zero if discount is set to the result of XIRR using the same cash flow amounts and schedule.

See Also

XNPV: Calculates the net present value of an investment based on a specified series of potentially irregularly spaced cash flows and a discount rate.

PV: Calculates the present value of an annuity investment based on constant-amount periodic payments and a constant interest rate.

NPV: Calculates the net present value of an investment based on a series of periodic cash flows and a discount rate.

MIRR: Calculates the modified internal rate of return on an investment based on a series of periodic cash flows and the difference between the interest rate paid on financing versus the return received on reinvested income.

IRR: Calculates the internal rate of return on an investment based on a series of periodic cash flows.

To use the XIRR Formula, simply begin with your edited Excellentable:

Begin typing the XIRR Formula in the cell you want the result to be displayed:

• values - An array or range containing the income or payments associated with the investment.
  • values must contain at least one negative and one positive cash flow to calculate rate of return.

• dates - An array or range with dates corresponding to the cash flows in values.
• guess - [ OPTIONAL - 0.1 by default ] - An estimate for what the internal rate of return will be.

The Result will be displayed in the chosen cell:

	A	B	C
1	Cash Flow	Date	Result
2	-8000	1/1/2015	1.070359265
3	1000	2/1/2015
4	2500	4/1/2015
5	2600	8/1/2015
6	3000	12/1/2015
7	3800	2/1/2016