XIRR Monthly CF / offset function, etc.

Can someone help with a dynamic XIRR calculation?  The GP in the deal puts in all equity through a particular month and the LP starts to contribute capital after that.  I am looking for an off-set type equation that will calculate XIRR if the date ranges change.  Would appreciate if someone can share an equation for this.  Pain in the ass to keep dragging between month 8 or 15 due to timing of first negative CF. Thanks in advance.

Comments (5)

Jan 14, 2022 - 3:35am

If you already have a capital deployment date you will need to combine XIRR with OFFSET(MATCH) to tell your IRR calculation where to start.

If your input is not driven by a date then use an INDEX(MATCH(INDEX)) to find the first negative value of the cashflow and then combine that with the above (google "find first non-zero value excel")

Most Helpful
Jan 14, 2022 - 4:22pm

I think offset over complicates it, if another person using the model isn't familiar with it as a formula they wont understand what's going on. You can achieve the same result with a combination of XIRR, ROUND, IFERROR and SUM. Assuming you've a 36 month cashflow over cells B2:AK2, dates in B1:AK1 and the formula in row 3. The formula is: =IFERROR(ROUND(XIRR(B2:$AK2,B$1:$AK$1),4),0)*(SUM($A3:A3)=0). Sum cells B3:AK3 which will give you the IRR output as the formula will return the IRR on the month of the first cashflow. 

  • Economist in AM - Other
Jan 14, 2022 - 8:16pm

thank you!  what does A3:3 impact the calc?  This is another equation that works someone shared with me and it worked for my analysis.  my knuckle head can't grasp your simple logic haha

  =XIRR(INDEX(4:4,AGGREGATE(15,6,COLUMN(F4:W4)/(F4:W4<>0),1)):W4,INDEX(3:3,AGGREGATE(15,6,COLUMN(F4:W4)/(F4:W4<>0),1)):W3)

Jan 15, 2022 - 3:29pm

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