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Originally Posted by Cool_Sparrow
FIREdreamer, How do you calculated XIRR for such odd dates (fractional years)? Vanguard does not allow me to do it. Is there an easier method than plugging all cash flows into Excel and than using XIRR function? There are far too many transactions for me to do that.
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Unfortunately, XIRR computation requires plugging in all cash flow transactions either in Excel or in a piece of software like Quicken. I am not aware of any alternative. When computing XIRR, it does not matter whether you are using whole years or fractional years, as long as you are looking at a period longer than one year. The XIRR function returns an average annual return. There is a simple formula that can help you convert the average annual return into a cumulative return which comes in handy when using fractional years.
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