![]() The outflows is the money which you invested in buying the shares. You will love to read this too 5 Ways to Link Aadhaar & PAN Date ![]() (To calculate the internal rate of return for a series of periodic cash flows, use the IRR function).įormula for XIRR is XIRR (values,dates) whereĭates is a schedule of payment dates Let us use excel sheet to calculate XIRR. XIRR returns the internal rate of return for a schedule of cash flows that is not necessarily periodic. How do you calculate your returns ? Enter XIRR. On June 6th 2007, you finally sold off all the 675 shares at Rs 700/. When the share price climbed to Rs 287/- on May 5th 2006, you purchased another 75 shares. Suppose, you buy 200 shares of company X at Rs 275/- on January 1st 2004 and then again 400 of them at Rs 225/- on April 4th 2005. Let’s look at the concept with an XIRR example. This can be calculated using the XIRR function. How do you calculate the returns in such a case ? Both the inflows and outflows are of different amounts and at different time periods. ![]() You could then sell it off after you have made some profits. How do you calculate returns from your investments when the investments you make (inflows) and returns you get (outflows) are at different periods in time ? Using XIRR to calculate CAGR. For example, you could buy shares of a company at different prices and at different periods of time.
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