xirr

[Guest]

In using the XIRR formula, is it possible to use the date as "year only"
instead of month/day/year format ?

 

[Fred Smith]

No it's not. XIRR needs to know the actual date in order to do its calculation.

If you wanted to fool it, you could use June 30th of each year as a good
approximation.

However, you probably want IRR if what you have are annual cash flows.

 

[joeu2004]

No it's not. XIRR needs to know the actual date in order to do its calculation.
If you wanted to fool it, you could use June 30th of each year as a good
approximation.

Why June 30th instead of Jan 1 or Dec 31 or, in fact, any other date
(except Feb 29 ;->)?

 

[Fred Smith]

I used June 30th because it's the middle of the year. In fact, any day of the
year (consistently used) would produce the same results.

Regardless, if you don't know the actual date, XIRR is probably the wrong
function for you. IRR is more likely to be the one you need.

 

[joeu2004]

I used June 30th because it's the middle of the year. In fact, any day of the
year (consistently used) would produce the same results.

Of course. Mine was a rhetorical question to note the silliness of
your making a point of using June 30. As we both noted, any date other
than Feb 29 will suffice. There is no value -- nor harm -- in
selecting "the middle of the year" in this case. I would have chosen
Jan 1 myself, if only because it is so-o easy to type. (And because
I'm sure I would not have to answer to some nitpicker who wanted to
know why, since it such an obvious choice ;->.)