How is XIRR compute and what does the number mean?

Q&A
1

  1. XIRR essentially returns the internal rate of return (IRR) for a series of cash flows that occur at irregular intervals. See https://exceljet.net/excel-functions/excel-xirr-function

  2. Basically, it is the money weighted returns.
    Based on the average amount of money you have invested, what is the returns you get?
    Or “returns in absolute value for that year” / “average amount of money invested in that year”

3 Likes
2

Hi,

So what does it mean if it is a negative number?
And what does it mean if it is a positive number?

Thank you in advance.

3

Hi,

This means that you have a net loss.

This means that you have a net profit.