Calculating IRR?

[noppenbd]

Can anyone help me with calculating an internal rate of return for a portfolio? What tools do you use? So far the best I have found is to use is the XIRR function in Excel, but is pretty clunky. I want something that takes into account when I added to the investment, not just the overall investment versus the portfolio value. I think this is called the "Money Weighted Return" versus the "Time Weighted Return", which ignores when contributions were made.

[khilleme]

I don't have the calculation right off hand, but if you can find a financial management textbook it should be able to tell you. A financial calculator should be all you need. You need to know the weights of the stocks in your portfolio and the betas of each of those stocks I believe. It has been a little while though since I did it.

[sweeps]

This blogger seems to have good success with XIRR(). He provides a sample spreadsheet.

[jIM_Ohio]

Here are some threads

Investment return rate calculator


Rates of return calculation - Early Retirement Forums

[noppenbd]

I made up my own Excel spreadsheet using the XIRR function, and attached it to this post. Could somebody please sanity check it for me?