Description
Calculates the internal rate of return of an investment based on future cashflows on specific dates for a given time. The internal rate of return is the rate for which the NPV (net present value) would be 0.
Syntax
XIRR(Payment Metric c, Guess] ], Compute All Cells] ], Ranking Dimension] ], Days Used])
| Argument | Type | Dimensions | Description |
|---|---|---|---|
| Payment Metric (required) | Number or Integer | Ranking Dimension | This represents the cashflow of the investment. Cashflow can be positive if there is income or negative if payments are needed. |
| Guess (optional) | Number or Integer | No Dimension | This number represents a value close to what you expect your IRR to be. It cannot be below -1 and should rarely be above 100. If not filled, it is by default set at 0.1. |
| Compute All Cells (optional) | boolean | No Dimension | Defines if the computation should be done on all Ranking Dimension’s items. If TRUE, starts at the first non-empty Ranking Dimension item until the last non empty. If FALSE, compute only on the first non-empty item of Ranking Dimension. By default, set to FALSE. |
| Ranking Dimension (optional) | Dimension (any kind) | Required when Payment Metric is defined on multiple dimensions. Defines the dimension used to perform the calculation on. | |
| Days Used (optional) | Date | Time Dimension | Required when Ranking Dimension is not a Time Dimension generated by Pigment. Defines the date property that provides the specific dates of the future cashflows. |
Return type
| Type | Dimensions |
|---|---|
| Number | No Dimension, or subset of Payment Metric’s Dimensions |
If Compute All Cells is FALSE, will return for the first item of Ranking Dimension for which Payment Metric was not empty the rate for which the NPV of all future payments would be equal to 0.
If Compute All Cells is TRUE, will return for all items of Ranking Dimension the rate for which the NPV of all future payments would be equal to 0.
When Compute All Cells is FALSE, items of the ranking dimensions without a payment will be ignored. When it’s TRUE, empty items will be set to 0 for the computation.
The formula only considers the numeric values, other value types are ignored.
Pigment uses the Newton-Raphson method to find the IRR and uses the guess as the first point. A result is considered as found once the method has found an IRR for which the NPV is equal to 0 with a 0.00001 percent accuracy.
If after 200 iterations, no result is found, the system will return a blank value.
Payments need to be of different signs in order to find a possible result, i.e. you will get a blank result if all values are positive or negative.
Examples
Click on image to enlarge.
| Formula | Result | Description |
|---|---|---|
|
| Click on image to enlarge. 
| This example uses a simple For Days Used, we use Here the Guess has been set to |
XIRR('Payment Metric', 0.5, TRUE, 'Fiscal Year', 'Fiscal Year'.Date) | Click on image to enlarge. 
| This example is the same as above but sets the Compute All Cells to |
XIRR('Payment Per Country', 0.5, FALSE, 'Fiscal Year', 'Fiscal Year'.Date) | Click on image to enlarge. 
| This example uses a multi-dimensional Payment Metric named Payment Per Country and defined on two dimensions: Fiscal Year and Country. |
See also
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