XIRR function calculates the Internal Rate of Return for a supplied series of cash flows. It includes an initial investment value and a series of net income values.
The XIRR function is an inbuilt function in Excel and falls under the category of Financial Function. You can enter this as part of a formula in a cell of a worksheet.
It is useful for calculating Rate of Return on Investments, cash flow etc.
The internal rate of return is the interest rate accrued on an investment consisting of a series of payments and income that occur over the life of the investment.
Syntax for XIRR Function
=XIRR(values, dates, [guess])
Values: Range of cells containing the series of cash flows. The first value of the cash flow or payment must be a negative value. The series of values must contain at least one positive and one negative value.
Dates: Range of cells containing the dates that correspond to the series of cash flows.
Guess: A number that you guess is close to the result of XIRR. This Argument is optional and is used very often. If omitted, guess is assumed to be 0.1 (10 percent).
I have created the infographics for the XIRR Function. With the help of these infographics, you can easily learn step by step process for using this excel functions.
Furthermore, Excel consists of many inbuilt functions which are helpful in the analytical and statistical study of number.
Simply follow the instructions in the infographics below:
XIRR Function will return the #NUM! error value if at least one positive cash flow and one negative cash flow is not provided.
The date must a valid date, otherwise, XIRR will return the #VALUE! error value.
If any dates will be more than the starting date, XIRR returns the #NUM! error value.
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