Microsoft Office Tutorials and References

In Depth Information

**Using XIRR to Calculate a Return Rate When Cash Flow Dates Are Not Periodic**

Figure 13.15.

Figure 13.15.
XNPV

takes into account a series of cash flows on a series of

dates. The dates do not have to have identical periods, as in

XNPV takes into account a series of cash flows on a series of

dates. The dates do not have to have identical periods, as in NPV

NPV..

Using

Using
XIRR

XIRR
tto Calculate

Calculate a Return

Return Rate

Rate When

When Cash

Cash Flow

Flow Dates

Dates Are

Are Not

Not

Periodic

Periodic

As in the XNPV example, you can calculate an internal rate of return for a

business deal where the dates do not necessarily fall on the last day of the

year. To do so, use XIRR, as shown in the example at the bottom of
Figure 13.15
.

Syntax

XIRR(values,dates,guess)

The XIRR function returns the internal rate of return for a schedule of cash

flows that is not necessarily periodic. To calculate the internal rate of re-

turn for a series of periodic cash flows, use the IRR function. This function

takes the following arguments: