Yes, but it doesn't have a specific function.

You need to calculate the weighted average cash flow, the total return, then
annualize. Google Modified Deitz to get the algorithm.

--
Regards,
Fred


"Dave" wrote in message
...
Thanks to both of you.

I am only entering my contributions? Is the Modifed Deitz method something
that Excel can calculate?

Dave

"Fred Smith" wrote:

XIRR is the correct function. It should calculate the proper return without
any
trouble.

Remember that only cash flows affect the return. Is your problem that you are
including investment transactions in XIRR?

There are two industry standard methods of calculating return on investment.
One
is internal rate of return which XIRR uses, the other is Modified Deitz which
the CFA Institute recommends.

Make sure you and "they" are using the same method. If you are, you should be
able to match within at least two decimal places. Common reasons for errors
are
that you and "they" are using different investment dates (like you are using
the
date you wrote the check, and they are using the date they received it).

--
Regards,
Fred


"Dave" wrote in message
...
Yes that is the one I tried and it appears to overinflate the result.


Is this the best function for this purpose?

Thanks

"Duke Carey" wrote:

Have you tried XIRR()?

"Dave" wrote:

I have a beginning balance and an ending balance, I have the date and
amount
of each transaction in this time period. I am trying to calculate the
ROI
or
rate of return for my investments during this timeframe.

I have found a number of articles on different Excel function, but I
have
not been able to get close to what the investment company says is the
rate
of
return. So the assumption is, I haven't figured it out yet.

Thanks - Dave