Author Topic: XIRR Question  (Read 1949 times)

scotty0318

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XIRR Question
« on: May 31, 2017, 01:56:11 PM »
Newbie Question Here:

When calculating XIRR, what # do you pull from your monthly statement? Do you pull the balance under account total (available cash + committed cash + outstanding principal)?

The reason I ask is-- this # is higher than the adjusted account value on my Lending Club dashboard. I guess the adjusted account value takes into consideration the probability of defaults in the future. If/when this occurs It'll inevitably show up in my monthly statement thus affecting XIRR?

So to calculate XIRR I'd take the balance under account total (available cash + committed cash + outstanding principal) on 5/31/2016, include any deposits, and then the same account total balance on 5/31/2017?

Just making sure I understand correctly.

storm

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Re: XIRR Question
« Reply #1 on: May 31, 2017, 02:14:05 PM »
You are exactly right.  At the end of the month, I use the total from my statement to calculate my XIRR.  In between statements, I use the "Account Value" on the Summary page.  Adjusted account value factors in expected charge-offs, but it does not appear on the statement.

Quote
So to calculate XIRR I'd take the balance under account total (available cash + committed cash + outstanding principal) on 5/31/2016, include any deposits, and then the same account total balance on 5/31/2017?

You would use your beginning balance on 5/1, then any deposit or withdrawals, and then your ending balance on 5/31.  Example:

5/01/2017  $1000   (beginning balance)
5/15/2017  $250     (deposit)
5/31/2017 -$1300  (ending balance in negative)
                  =XIRR(B1:B3,A1:A3)
« Last Edit: May 31, 2017, 02:21:18 PM by storm »