Comments on: How to use XIRR in Excel to calculate annualized returns http://www.experiglot.com/2006/10/17/how-to-use-xirr-in-excel-to-calculate-annualized-returns/ Because you shouldn't need an MBA to be savvy about finance and business Sun, 21 Mar 2010 01:21:59 +0000 http://wordpress.org/?v=abc hourly 1 By: Sunil http://www.experiglot.com/2006/10/17/how-to-use-xirr-in-excel-to-calculate-annualized-returns/comment-page-1/#comment-223059 Sunil Mon, 09 Nov 2009 11:18:12 +0000 http://www.experiglot.com/2006/10/18/how-to-use-xirr-in-excel-to-calculate-annualized-returns/#comment-223059 Thanks for the help in calculating XIRR. Thanks for the help in calculating XIRR.

]]> By: Tumpa http://www.experiglot.com/2006/10/17/how-to-use-xirr-in-excel-to-calculate-annualized-returns/comment-page-1/#comment-221710 Tumpa Wed, 30 Sep 2009 13:39:12 +0000 http://www.experiglot.com/2006/10/18/how-to-use-xirr-in-excel-to-calculate-annualized-returns/#comment-221710 Excellent...very very useful Excellent…very very useful

]]> By: Joshua http://www.experiglot.com/2006/10/17/how-to-use-xirr-in-excel-to-calculate-annualized-returns/comment-page-1/#comment-199918 Joshua Tue, 13 Jan 2009 06:14:22 +0000 http://www.experiglot.com/2006/10/18/how-to-use-xirr-in-excel-to-calculate-annualized-returns/#comment-199918 How does one overcome excels limitation of calculating FV as it requires the monthly contribution to remain constant. Say I want to factor in annual increase of x% in the monthly contribution - what would the formula then look like? How does one overcome excels limitation of calculating FV as it requires the monthly contribution to remain constant.

Say I want to factor in annual increase of x% in the monthly contribution – what would the formula then look like?

]]> By: Steve Engelen http://www.experiglot.com/2006/10/17/how-to-use-xirr-in-excel-to-calculate-annualized-returns/comment-page-1/#comment-199346 Steve Engelen Thu, 08 Jan 2009 14:55:04 +0000 http://www.experiglot.com/2006/10/18/how-to-use-xirr-in-excel-to-calculate-annualized-returns/#comment-199346 Hi, Can someone help me and say if there is a MIRR function for irregular dates in excel? It is thus a combination of the MIRR function and the XIRR function. It is also called XMIRR but not a standard function in excel thanks Hi,
Can someone help me and say if there is a MIRR function for irregular dates in excel? It is thus a combination of the MIRR function and the XIRR function.
It is also called XMIRR but not a standard function in excel

thanks

]]> By: Dividend Tree http://www.experiglot.com/2006/10/17/how-to-use-xirr-in-excel-to-calculate-annualized-returns/comment-page-1/#comment-198294 Dividend Tree Tue, 30 Dec 2008 21:33:18 +0000 http://www.experiglot.com/2006/10/18/how-to-use-xirr-in-excel-to-calculate-annualized-returns/#comment-198294 Hello, At morningstar (see link below), IRR is calculates monthly rate of return -- not annual rate of return. It then provides one additional step to convert to annualized. http://news.morningstar.com/classroom2/course.asp?docId=3228&page=4&CN=COM Would that be valid for XIRR too ? i.e. XIRR gives monthly return and then convert to annualized ? Regards, DT Hello,

At morningstar (see link below), IRR is calculates monthly rate of return — not annual rate of return. It then provides one additional step to convert to annualized.

http://news.morningstar.com/classroom2/course.asp?docId=3228&page=4&CN=COM

Would that be valid for XIRR too ?
i.e. XIRR gives monthly return and then convert to annualized ?

Regards,
DT

]]> By: Bill Woessner http://www.experiglot.com/2006/10/17/how-to-use-xirr-in-excel-to-calculate-annualized-returns/comment-page-1/#comment-168677 Bill Woessner Wed, 13 Aug 2008 03:34:24 +0000 http://www.experiglot.com/2006/10/18/how-to-use-xirr-in-excel-to-calculate-annualized-returns/#comment-168677 I'm pretty sure you mean "Newton's Method", not "Newman's Method". Newton was a mathematician (among other things). Newman was a character on Seinfeld. :-p I’m pretty sure you mean “Newton’s Method”, not “Newman’s Method”. Newton was a mathematician (among other things). Newman was a character on Seinfeld. :-p

]]> By: Sensex http://www.experiglot.com/2006/10/17/how-to-use-xirr-in-excel-to-calculate-annualized-returns/comment-page-1/#comment-160979 Sensex Tue, 08 Jul 2008 08:29:13 +0000 http://www.experiglot.com/2006/10/18/how-to-use-xirr-in-excel-to-calculate-annualized-returns/#comment-160979 hey thanks for the info.... was dying to find out how to use XIRR hey thanks for the info…. was dying to find out how to use XIRR

]]> By: excel c# http://www.experiglot.com/2006/10/17/how-to-use-xirr-in-excel-to-calculate-annualized-returns/comment-page-1/#comment-137152 excel c# Thu, 28 Feb 2008 15:01:23 +0000 http://www.experiglot.com/2006/10/18/how-to-use-xirr-in-excel-to-calculate-annualized-returns/#comment-137152 excel c# excel c#

]]> By: Kevin http://www.experiglot.com/2006/10/17/how-to-use-xirr-in-excel-to-calculate-annualized-returns/comment-page-1/#comment-137051 Kevin Wed, 27 Feb 2008 20:02:19 +0000 http://www.experiglot.com/2006/10/18/how-to-use-xirr-in-excel-to-calculate-annualized-returns/#comment-137051 It looks like this function is basically calculating a day-weighted modified dietz return. This is just fine for the purposes that I have in mind, but I'm troubled by the fact that it automatically annualizes periods less than 1 year. I would prefer the function to calculate an unanualized figure- is that a possibility? It looks like this function is basically calculating a day-weighted modified dietz return. This is just fine for the purposes that I have in mind, but I’m troubled by the fact that it automatically annualizes periods less than 1 year. I would prefer the function to calculate an unanualized figure- is that a possibility?

]]> By: Ron Miller http://www.experiglot.com/2006/10/17/how-to-use-xirr-in-excel-to-calculate-annualized-returns/comment-page-1/#comment-126230 Ron Miller Sun, 20 Jan 2008 07:38:41 +0000 http://www.experiglot.com/2006/10/18/how-to-use-xirr-in-excel-to-calculate-annualized-returns/#comment-126230 Thanks for a very helpful article!. I do have one comment. If the Rate of Return value is negative, below about -10.02%, leaving out the "guess" results in an incorrect value for XIRR. If you include a guess of a negative number between 0 and -1 (not inclusive), it appears that XIRR will return a correct value. Thanks for a very helpful article!. I do have one comment. If the Rate of Return value is negative, below about -10.02%, leaving out the “guess” results in an incorrect value for XIRR. If you include a guess of a negative number between 0 and -1 (not inclusive), it appears that XIRR will return a correct value.

]]> By: John Ancich http://www.experiglot.com/2006/10/17/how-to-use-xirr-in-excel-to-calculate-annualized-returns/comment-page-1/#comment-125768 John Ancich Thu, 17 Jan 2008 04:26:39 +0000 http://www.experiglot.com/2006/10/18/how-to-use-xirr-in-excel-to-calculate-annualized-returns/#comment-125768 Hi, This is just the article I've been looking for. I knew about xirr, but the examples I saw were never as clear as yours, so now I "get it". My only question is that I notice the range you specify inside XIRR always has to start with the first row of data. I have data that has several empty rows above it, but when I try to do XIRR that includes blank rows above the data, I get an error (whether I fill those rows with zeros or empty space). Hope my question makes sense... I know the row number of the first row of data and the last row of data, but not sure how to make this a cell range that the xirr funcition can recognize. Hi,

This is just the article I’ve been looking for. I knew about xirr, but the examples I saw were never as clear as yours, so now I “get it”. My only question is that I notice the range you specify inside XIRR always has to start with the first row of data. I have data that has several empty rows above it, but when I try to do XIRR that includes blank rows above the data, I get an error (whether I fill those rows with zeros or empty space). Hope my question makes sense… I know the row number of the first row of data and the last row of data, but not sure how to make this a cell range that the xirr funcition can recognize.

]]> By: 63 Fantastic Personal Finance Posts : SCN - Personal Finance http://www.experiglot.com/2006/10/17/how-to-use-xirr-in-excel-to-calculate-annualized-returns/comment-page-1/#comment-121056 63 Fantastic Personal Finance Posts : SCN - Personal Finance Sun, 09 Dec 2007 18:11:29 +0000 http://www.experiglot.com/2006/10/18/how-to-use-xirr-in-excel-to-calculate-annualized-returns/#comment-121056 [...] How to use XIRR in Excel to calculate annualized returns - Experiments in Finance [...] [...] How to use XIRR in Excel to calculate annualized returns – Experiments in Finance [...]

]]> By: samar http://www.experiglot.com/2006/10/17/how-to-use-xirr-in-excel-to-calculate-annualized-returns/comment-page-1/#comment-75840 samar Wed, 06 Jun 2007 06:18:25 +0000 http://www.experiglot.com/2006/10/18/how-to-use-xirr-in-excel-to-calculate-annualized-returns/#comment-75840 your website has really valuable information , but can you extend these information regarding XIRR , to have complete amortization schedual using XIRR. i want to calculate interest , principad and balance for the whole period. thanks your website has really valuable information , but can you extend these information regarding XIRR , to have complete amortization schedual using XIRR. i want to calculate interest , principad and balance for the whole period.

thanks

]]> By: The Stubborn Capitalist » Blog Archive » 63 Fantastic Personal Finance Posts http://www.experiglot.com/2006/10/17/how-to-use-xirr-in-excel-to-calculate-annualized-returns/comment-page-1/#comment-30533 The Stubborn Capitalist » Blog Archive » 63 Fantastic Personal Finance Posts Sun, 25 Feb 2007 21:18:22 +0000 http://www.experiglot.com/2006/10/18/how-to-use-xirr-in-excel-to-calculate-annualized-returns/#comment-30533 [...] How to use XIRR in Excel to calculate annualized returns - Experiments in Finance [...] [...] How to use XIRR in Excel to calculate annualized returns – Experiments in Finance [...]

]]> By: Watch out when using compounded average returns | Experiments in Finance http://www.experiglot.com/2006/10/17/how-to-use-xirr-in-excel-to-calculate-annualized-returns/comment-page-1/#comment-19413 Watch out when using compounded average returns | Experiments in Finance Mon, 08 Jan 2007 18:19:27 +0000 http://www.experiglot.com/2006/10/18/how-to-use-xirr-in-excel-to-calculate-annualized-returns/#comment-19413 [...] Toward the end of December, I received some questions from readers asking about how to calculate average returns on investment portfolios using Excel. In previous posts on this site, you can read about using CAGR, Excel’s XIRR function, and simple averages, but they all come with one big warning, which is that your previous average performance may not necessarily be a good way to set your expectations about your future performance. [...] [...] Toward the end of December, I received some questions from readers asking about how to calculate average returns on investment portfolios using Excel. In previous posts on this site, you can read about using CAGR, Excel’s XIRR function, and simple averages, but they all come with one big warning, which is that your previous average performance may not necessarily be a good way to set your expectations about your future performance. [...]

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