Thursday 7 January 2016

Calculating your stock portfolio returns using the XIRR function in Excel


Date                 Amount
12/31/14      -100,000.00         Your initial value of the shares in your portfolio
1/15/15            -3,000.00         You bought new shares
4/10/15                200.00         You received dividends
7/2/15              -1,500.00         You bought more shares
10/15/15              250.00          You received dividends
11/10/15           1,300.00          You sold some shares
12/31/15       110,000.00          Your final value of the shares in your portfolio

Using the XIRR function in Excel
= XIRR(values, dates)

XIRR = 7.02%


Note:
Your initial portfolio value and new shares bought - negative signs
Your final portfolio value, shares sold and dividends received - positive signs


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