ExcelBanter

ExcelBanter (https://www.excelbanter.com/)
-   Excel Discussion (Misc queries) (https://www.excelbanter.com/excel-discussion-misc-queries/)
-   -   How to calculate IRR from a monthly income stream (https://www.excelbanter.com/excel-discussion-misc-queries/70882-how-calculate-irr-monthly-income-stream.html)

rflegeis

How to calculate IRR from a monthly income stream
 
Trying to get an irr for an 18 month income stream, with all the income in
the last 3 months. Thanks for your help

Duke Carey

How to calculate IRR from a monthly income stream
 
Put the investment in cell A1 AS A NEGATIVE
Fill the next 18 rows with the actual cash flows. If there are none for the
first 15, just enter zeros. Then use =IRR(a1:A19)*12


"rflegeis" wrote:

Trying to get an irr for an 18 month income stream, with all the income in
the last 3 months. Thanks for your help


[email protected]

How to calculate IRR from a monthly income stream
 
"Duke Carey" wrote:
"rflegeis" wrote:
Trying to get an irr for an 18 month income stream,
with all the income in the last 3 months


[....] =IRR(a1:A19)*12


Do financial analysts simply multiply by 12, as you did?
Or if they compute the effective annual rate compounded
monthly:

=FV(IRR(A1:A19),12,,-1)-1


All times are GMT +1. The time now is 09:05 AM.

Powered by vBulletin® Copyright ©2000 - 2025, Jelsoft Enterprises Ltd.
ExcelBanter.com