6 Replies to “Excel Finance Class 81: XNPV Function XIRR Function – See Algorithm That XNPV uses”

  1. Use RATE when cash flows are all equal and the times between each cash flow are all equal. RATE returns periodic rate.

    Use IRR when cash flows are NOT equal and the times between each cash flow are all equal. IRR returns periodic rate.

    Use XIRR when cash flows are NOT equal and the times between each cash flow are NOT all equal. XIRR returns annualized compound rate.

  2. Use RATE when cash flows are all equal and the times between each cash flow are all equal. RATE returns periodic rate.
    Use IRR when cash flows are NOT equal and the times between each cash flow are all equal. IRR returns periodic rate.
    Use XIRR when cash flows are NOT equal and the times between each cash flow are NOT all equal. XIRR returns annualized compound rate (internal rate of return or geometric mean).

  3. Dear Sir: I am having  real problem with XIRR. In my retirement account, all contributions (deposits) are shown as positive. Amounts that I take out (withdrawals) are shown as negative. The last entry current amount is show as negative. My understanding from lectures indicate that the first amount, lodgment, should be negative. Excel help on XIRR show the first amount as negative. Please Sir, can you help me and set the records straight. Kind regards, Raymond Grant. E-Mail: [email protected]

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