How to use XIRR in Excel

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Step 1: Arrange your cash flows in chronological manner

Note:

  1. Use sign conventions ( “-ve” for inflow/ deposit/ investment, “+ve” for outflow/withdrawal/redemption)
  2. Assume your current invested amount as the final outflow (+ve), even if we have not withdrawn that amount

Step 2: Formula for XIRR

Formula in excel is ” =XIRR( Values, dates, Guess) “

Values: Select the cash flow from top to down

Dates: Select the dates from top to down (Chronological)

Guess: Can leave it blank, default value is 10%

Step 3: Get the value

Hit “Enter” to get XIRR Value

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