Excel

XIRR: Excel Formulae Explained

How do you use XIRR in Excel?

The XIRR function in Excel calculates the internal rate of return for a series of cash flows. To use XIRR, you need to enter the cash flows into a series of cells, and then use the XIRR function to calculate the return. The XIRR function takes four arguments: the range of cells containing the cash flows, the start date, the end date, and the reinvestment rate. The reinvestment rate is optional, but if you include it, Excel will use it to calculate the return if the cash flows are reinvested.

What is the syntax of XIRR in Excel?

The syntax of XIRR in Excel is as follows:

=XIRR(values, dates)

values is the array of cash flow values, in chronological order

dates is the array of corresponding dates, in chronological order

What is an example of how to use XIRR in Excel?

The XIRR function in Excel is used to calculate the internal rate of return for a series of cash flows. This function can be used to calculate the return on an investment, the return on a loan, or the return on a lease. To use the XIRR function, you need to provide the following information: the cash flow amounts, the dates of the cash flows, and the rate of return. The XIRR function will then calculate the internal rate of return for the cash flows.

For example, let's say you have an investment that has paid you the following cash flows: $1,000 on January 1, 2015, $2,000 on April 1, 2015, $3,000 on July 1, 2015, and $4,000 on October 1, 2015. To calculate the internal rate of return for this investment, you would use the following formula:

=XIRR(A1:A4,B1:B4,C1)

where A1:A4 is the range of cash flow amounts, B1:B4 is the range of dates, and C1 is the rate of return. This formula would return the internal rate of return for this investment, which is 8.5%.

When should you not use XIRR in Excel?

There are several instances in which you should not use XIRR in Excel. One instance is when you have a series of negative cash flows. In this case, Excel will return an error. Another instance is when you have multiple investments with different return rates. In this case, Excel will not be able to accurately calculate your return rate. Finally, if you have irregular cash flows, Excel will not be able to accurately calculate your return rate.

What are some similar formulae to XIRR in Excel?

The XIRR function in Excel is used to calculate the internal rate of return (IRR) for a series of cash flows. This function can be used to calculate the IRR for a series of investments, loans, or other financial transactions. The XIRR function can also be used to calculate the IRR for a series of periodic or non-periodic cash flows.

The IRR function in Excel is used to calculate the internal rate of return (IRR) for a series of cash flows. This function can be used to calculate the IRR for a series of investments, loans, or other financial transactions. The IRR function can also be used to calculate the IRR for a series of periodic or non-periodic cash flows.

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