In the above table the interest inflows are irregular. Excel allows a user to get the monthly internal rate of return of an investment using the XIRR function. The XIRR here is 0037.
Use the IRR function in Excel to calculate a projects internal rate of return.
Things to remember about the XIRR Function. The internal rate of interest on these cash flows the investment amount is showing a minus sign. XIRR function returns the rate of interest of the Cashflow at irrrgular intervals unlike IRR function. Using a changing rate starting with guess XIRR cycles through the calculation until the result is accurate within 0000001 percent.