24601NoMore
Thinks s/he gets paid by the post
- Joined
- Dec 8, 2015
- Messages
- 1,166
Hey, everyone..quick question on using IRR (which I candidly haven't ever fully figured out) in Excel..
As an overly simplified example..assume a scenario where a person invests $10K at the beginning of every year for 3 years, and there's a 7% return in years 1 and 2, and a 6% return in year 3. Would you calculate the IRR as IRR(Invested column)?
eg - assuming following table starts in cell A1:
So, IRR(Invested column - ie: B2:B5) = 6.51%?
Thanks!
As an overly simplified example..assume a scenario where a person invests $10K at the beginning of every year for 3 years, and there's a 7% return in years 1 and 2, and a 6% return in year 3. Would you calculate the IRR as IRR(Invested column)?
eg - assuming following table starts in cell A1:
| Year | Invested | Return % | Begin Val | End Val |
| 1 | -10000 | .07 | 10000 | 10700 |
| 2 | -10000 | .07 | 20700 | 22149 |
| 3 | -10000 | .06 | 32149 | 34077.94 |
| 4 | 34077.94 | |||
Thanks!
