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Punjabi Mathematician Punjabi Mathematician is offline
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I tried calculating my irregular investment returns for the year using both IRR and XRR but could not return any results. Both IRR and XRR only returns a result if I omit my initial capital. I highly doubt the returns are correct, could anyone teach me how do I solve it?

I read a couple of explanations online but they were too technical for me to understand. If someone could explain why do I get an error it would be most helpful! Here are my values.

10-May-15 30907
18-May-15 -13982
20-May-15 -8095
17-Aug-15 597
24-Aug-15 3579
24-Aug-15 2524
25-Aug-15 938
30-Aug-15 -662
11-Nov-15 -1025
22-Apr-15 -6596
30-Apr-15 -1549
21-May-15 -64
5-Aug-15 -1111
22-Apr-15 6163
5-Oct-15 -848
10-Dec-15 -3797
17-Aug-15 49
10-Aug-15 97
29-Jul-15 64
1-Aug-15 -19
24-Aug-15 2069
31-Aug-15 -3606
31-Aug-15 -69
31-Aug-15 -94
1-Sep-15 -323
25-Sep-15 71
24-Aug-15 -1104
24-Aug-15 -836
24-Aug-15 -1302
24-Aug-15 970
24-Aug-15 272
24-Aug-15 1281
24-Aug-15 483
24-Aug-15 1408
28-Aug-15 -575
28-Aug-15 -546
2-Sep-15 -1467
13-Nov-15 313
9-Dec-15 -799
9-Dec-15 906
31-Dec-15 238
31-Dec-15 630
31-Dec-15 1036
31-Dec-15 851
31-Dec-15 3810
31-Dec-15 14265
Firstly Excel XIRR is only comfortable with data sorted along dates whereas yours is all intermingled.

Let us first put the data is ascending order by dates

4/22/2015,-6596
4/22/2015,6163
4/30/2015,-1549
5/10/2015,30907
5/18/2015,-13982
5/20/2015,-8095
5/21/2015,-64
7/29/2015,64
8/1/2015,-19
8/5/2015,-1111
8/10/2015,97
8/17/2015,597
8/17/2015,49
8/24/2015,3579
8/24/2015,2524
8/24/2015,2069
8/24/2015,-1104
8/24/2015,-836
8/24/2015,-1302
8/24/2015,970
8/24/2015,272
8/24/2015,1281
8/24/2015,483
8/24/2015,1408
8/25/2015,938
8/28/2015,-575
8/28/2015,-546
8/30/2015,-662
8/31/2015,-3606
8/31/2015,-69
8/31/2015,-94
9/1/2015,-323
9/2/2015,-1467
9/25/2015,71
10/5/2015,-848
11/11/2015,-1025
11/13/2015,313
12/9/2015,-799
12/9/2015,906
12/10/2015,-3797
12/31/2015,238
12/31/2015,630
12/31/2015,1036
12/31/2015,851
12/31/2015,3810
12/31/2015,14265

However this would lead to a solution by Excel XIRR.

The reason is mainly the limitation of iterative method used in programming XIRR most likely to be the Newton or Newton-Raphson method.

The issue is in larger sphere beyond XIRR calculation, with all due respect Sir Isaac Newton didn't know much of Math and his invention of Calculus is also on the wrong footings. Here the iterative method he invented to find roots of functions is a prime example of how those who do not know or understand Mathematical Formulation make an excuse to use iteration to solve the problem at hand whose actual solution is unknown to such highly acclaimed Mathematicians of old school and new school.

We are of firm belief and have proven that in finding interest rate such as those by Excel RATE, IRR and XIRR functions that there is always ONE ACTUAL REAL RATE (Given that at least one of the cash flows has a sign other than the other cash flows).

Thus this popular Excel spreadsheet program has Toy Functions that were programmed by those who did not know or understood Financial Formulation.

We have in our possession closed form formulas to find interest rate as it is to be determined by RATE, IRR and XIRR functions.

We are the ONLY PERSON in the UNIVERSE to have such Finance Formulations that are hitherto unknown to rest of the Universe.


"What God!, This Universe is a man-made fiasco." - A Village Idiot From Punjab