Methodology & worked examples
Simple Return compares total monetary gain with the initial investment. CAGR is annualized only when no untimed cash receipts or separate fees intervene. Cash Flow mode discounts each investor-perspective external payment using actual UTC date differences divided by365. XIRR solves XNPV=0; it depends on cash-flow size and timing, unlike a time-weighted return.
Profit = ending value + cash received − initial investment − separately paid fees
Total return = profit / initial investment × 100
CAGR = (ending value / initial investment)^(365 / elapsed days) − 1
XNPV(r) = Σ CFᵢ / (1+r)^((dateᵢ−initial date)/365)
XIRR: XNPV(r)=0; real annual return = (1+nominal return)/(1+inflation)−1
Verified illustrative example
Illustrative example: $10,000 on January1,2025 grows to $12,100 on January1,2027, with no external receipts or fees. Profit is $2,100, total return21%,730days and ACT/365 CAGR10%. The same two dated flows give XIRR10% and XNPV$0 at10%.
Microsoft reference schedule
The official example uses −$10,000 (2008-01-01), +$2,750 (2008-03-01), +$4,250 (2008-10-30), +$3,250 (2009-02-15), +$2,750 (2009-04-01). XIRR≈37.3362535%; XNPV at9%≈$2,086.65. These are historical method examples, not a recommended investment.
Assumptions & sources
All defaults are ILLUSTRATIVE_DEFAULT. No market prices, company records or official future inflation forecasts are loaded. Reset restores examples; mode switches keep entered values.
Enter only cash crossing the account boundary. Reinvested dividends and fees already reflected in balances must not be added again. Terminal valuation is remaining portfolio value, not actual cash received; do not repeat proceeds already withdrawn.
Amounts: USD0–10¹², at most6decimal places; initial investment positive. Dates1900–2200 and up to36525days. Up to24transactions. Negative ending value unsupported; zero ending value has no CAGR.
XIRR searches −99.99% to100,000% with at most200,000evaluations and96bisections per bracket. Relative residual≤10⁻¹⁰ of absolute discounted flows (absolute floor10⁻⁸USD). Stationary, multiple or unconfirmed-unique roots are ambiguous; absence in this finite range is not proof of no mathematical root.
Microsoft ACT/365 examples are reference vectors, not full Excel compatibility. This app accepts date-only Gregorian values, preserves same-date rows and can show mathematical XNPV for one-sign flows; Excel documents both signs. UI row order is preserved; internal solving groups dates exactly.
Optional inflation is a constant annual user assumption (above−100%, at most1,000%). Real ending value is purchasing power at the start date; it is not a complete real cash-flow performance record. No tax, account link, TWR or future forecast is provided.
- XIRR function — Microsoft
- XNPV function — Microsoft
- GIPS Standards Handbook for Firms — CFA Institute · GIPS
Methods checked2026-11-02. Source access and numerical verification are separate.
FAQs
How are Simple Return and XIRR different?
Simple Return is a total monetary ratio. XIRR annualizes dated external contributions and receipts; timing matters.
Why is CAGR unavailable after cash distributions?
Their timing is not specified in Simple mode. Adding receipts to ending wealth would imply a timing or reinvestment assumption. Enter their actual dates in Cash Flow mode.
What signs should I enter?
Use nonnegative amounts and choose the transaction type. Contributions and fees become negative; withdrawals and distributions positive. Terminal valuation is added once.
Are repeated transactions deleted?
No. Identical dates and amounts can be legitimate. All rows are retained; equal-date amounts are grouped only for calculation.
What does ambiguous XIRR mean?
Multiple or tangent roots, or unconfirmed uniqueness, prevent a single reliable annual figure. XNPV at your selected rate remains available.
Does the chart show actual account balances?
No. It shows only entered flows and terminal valuation, with a text table. Cumulative contributions are not market values.
Are dates affected by my timezone?
No. Date-only Gregorian values use integer UTC days and a365-day annual basis, including real leap days.
Are transactions sent or saved?
No. Entries and results remain in browser memory. Share includes only the page link; aggregate usage and reports exclude financial values and transaction dates.