IRR doesnt work. Need help for function for Rate Of Return

[monkeytrader]

Hi all. Hope someone can help:

i need to figure out the rate of return, based on a series of non-periodic,
non-equal payments. for example, a man started an account up with a $2,200
contribution in June, 2006. from june till end of 2006, he made 6 subsequent
contributions totaling $7,800, each in a different amount (some $1,100, some
$1,200, etc.) and on a different schedule (no rhyme or reason to the date).
as of 12/31/06, his total contributions equaled $10,000 - his account balance
equaled $10,700. he didn't get a simple 7% return - he had payments over the
time period to help him out.

any suggestions?


Date Contributions
6/21/2006 2,200
10/6/2006 1,100
11/29/2006 1,100
12/11/2006 1,650
12/14/2006 1,650
1/3/2007 1,100
1/12/2007 1,200

$ 10,000

Thanks in advance for your help.

 

[Ron Rosenfeld]

Hi all. Hope someone can help:

i need to figure out the rate of return, based on a series of non-periodic,
non-equal payments. for example, a man started an account up with a $2,200
contribution in June, 2006. from june till end of 2006, he made 6 subsequent
contributions totaling $7,800, each in a different amount (some $1,100, some
$1,200, etc.) and on a different schedule (no rhyme or reason to the date).
as of 12/31/06, his total contributions equaled $10,000 - his account balance
equaled $10,700. he didn't get a simple 7% return - he had payments over the
time period to help him out.

any suggestions?


Date Contributions
6/21/2006 2,200
10/6/2006 1,100
11/29/2006 1,100
12/11/2006 1,650
12/14/2006 1,650
1/3/2007 1,100
1/12/2007 1,200

$ 10,000

Thanks in advance for your help.

Look at the XIRR function.
--ron

 

[Dave F]

XIRR being the appropriate function for a series of unequal cash flows.

Dave