I am not using IRR within xcel.
I am trying to aproximate my IRR year over year, and also compare my IRR with the returns of the funds.
I will also soon do some 3 yr and 5 yr averaging once I have enough data.
I have seen the formula mentioned above
 Quote:
Gain = ending balance - starting balance - deposits
Avg balance = start +(end-start)/2
Return = Gain/Avg balance
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but it was different than this (something like numerator is current value+1/2 deposits and denominator was previous balance-1/2 deposits).
In this equation (also mentioned above), what is r? INFLATION, just caught that. If I assume no inflation (because I don't measure that right now), is that 0 or 1? 1 is my SWAG. I need to take inflation out of this so I can compare the returns to the mutual funds actual return numbers.
Quote:
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IRR= E/(S*(1+r)^12+D((1+r^12)-1)/r)
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