Why does XIRR give wrong answer? | Is XIRR returning 0% or 2.98023E-09? | Learn the alternative

Is the XIRR function in your file returning 0.0% or a weird number like 2.98023E-09 when you know that it should actually be giving a return?
The reason is that your cash flows are not in the pattern it is expecting. It is more likely that your first cash flow is 0 or a positive number.
In this video you will learn why XIRR fails and how you can use the IRR function, instead, to get the appropriate result as long as the gap between the cash flows is consistent (i.e. consistently quarterly or monthly etc)
You will still be recommended to use XIRR in case the gap between two subsequent cash flows is highly uneven.

[@christoslefkimiotis9889]

Very nice video, it is always better and safer to build your discount formulas and use goal seek to force the nov to of the flows to 0 in this way you bulletproof your calcs if the first flows are 0. Xirr is a quick way but nit the best

[@anilpenugondakumar4518]

One way to work around this limitation is to introduce a small initial cash flow, even if it's just a negligible amount, and then adjust the formula. Insert one row & input a dummy initial cashflow as negative -0.00001. It should work

[@ProfectusLearning]

Yes, that works in majority of the cases. But we have seen that approach failing in some occasions. Reproducing the error hasn’t been easy, but we recommend that approach as a last resort.

[@anuragideas6237]

Can you please comment back on my issue?

[@stanwilson1189]

Thanks i did this very comparison you eluded to ; some people just rely on XIRR

[@Talib_Husain18]

Very useful info 👍

[@spideyocd]

It would be better if you could provide an excel sheet you worked on