How to work out annualized growth rate of a regular investment

comdw

I've been trying to assess the rough performance of some investments which I contribute to both monthly and occasionally in lump sums, but I'm struggling to work out the formulas I need for Excel.

Does anyone know of a free spreadsheet that I can download that will do this for me or alternatively the formula I need to use?

It needs to take into account the date of each amount invested along with the final value and convert that into a annual growth rate. Where I was struggling is with how to use the dates properly instead of just adding up the total investments and comparing it to the current value.

pjala

This could be really useful, any ideas anyone?

McSaver

Start Month Balance = Payment = Months Interest = End Month Balance

EG: 0 = 250 = (Balance+Payment)*(1+0.05*1/12) = 251.04
251.04 = 250 = (Balance+Payment)*(1+0.05*1/12) = 503.13
503.13 = 250 = (Balance+Payment)*(1+0.05*1/12) = 756.26

ETC.

Mr_Mumble

You can use the "irr" (or even more complex "xirr") function in Excel for this. Type "irr" or "xirr" into Excel help for more. The folks at the fool boards love their xirr so check out the seach there too, first result is:

http://boards.fool.co.uk/Message.asp?mid=10572081&sort=whole

comdw

Mr_Mumble wrote: »

You can use the "irr" (or even more complex "xirr") function in Excel for this. Type "irr" or "xirr" into Excel help for more. The folks at the fool boards love their xirr so check out the seach there too, first result is:

http://boards.fool.co.uk/Message.asp?mid=10572081&sort=whole

XIRR looks to the be the answer - thanks! This post explains fully how to use it:

http://boards.fool.co.uk/Message.asp?mid=10523903&sort=postdate