XIRR is a feature use in Excel to measure rate of returns. Best for measuring irregular returns such as stock transactions. XIRR is also the formula we enter in Excel spreadsheet to measure investment performance in a compounded way.Just type in a single cell in the Excel “XIRR(” and a help note will appear “XIRR(Values,Dates,[guess])“. Values is the value of your trade transaction. Date is the day transacted. Typically we can ignore “[guess]”.Basically the we only need to care for “XIRR(Values,Dates)“. If you have weird answer, then “[guess]” needs to be use but this is rare and is due to mathematical solution which has more than one answer.

We know through common sense that for $1000 investment in $1 stock price of a company, if we are able to sell at $2 after holding for a full year, the return will …