IRR vs XIRR – Excel Template

Ivan Kitov
Ivan Kitov

IRR and XIRR are Excel functions that you can use to determine the rate of return on your investment. IRR assumes all the periods in a series of cash flows are equal and doesn’t consider the timing of the cash flows. XIRR is a more versatile function that gives you the flexibility to assign specific dates to each cash flow, making it suitable for cash flow series that occur at irregular intervals. Essentially, the XIRR formula weighs the timing of cash flows and calculates a more accurate return on investment.

This open-access Excel template is a useful tool for bankers, investment professionals, corporate finance practitioners, portfolio managers, and anyone preparing a corporate presentation.

Internal Rate of Return is among the topics included in the Corporate Finance module of the CFA Level 1 Curriculum. Gain valuable insights into the subject with our Corporate Finance course.

You can also explore other related templates such as—NPV, Payback Period, and Discounted Payback Period.