Hello - Does anyone have a link or resource to share in order to calculate the following in Excel?
Invested $2.1m on Jan 20th 2013 and additional $1.3m on June 20th 2014
Returning $5.6m on Feb 20 2017
Thank you!
XIRR
14.96% per year.
Thank you magiican for the calculation.
Could you tell me how that calculation works in Excel, and if the function is still valid based on the time period (two outflows in 2013 & 2014, followed by inflow in 2017).
It’s an IRR function that uses dates for each cash flow.
The number and amount of the cash flows doesn’t matter. It calculates the annual IRR, using the date of the first cash flow as the inception of the investment.
Make two columns: dates in the first column, corresponding cash flows in the second, with appropriate signs on the cash flows. Then put the cash flows and dates into the XIRR function; you should get 14.96%.
Makes sense, thank you!
You’re quite welcome.