I am trying to learn how to use XIRR following tutorials.I think I'm overlooking something with this dataset problem when using Google Sheets to calculate XIRR. Can someone be kind enough to explain what's wrong?
1 Answer
You don't have a large enough positive transaction to balance the negative ones. For example deposits recorded as negative cash flows should be balanced against a positive balance (or positive withdrawal).
E.g. 3 deposits: £10, £11, £12 and final balance £35 would be listed as
-10
-11
-12
35
XIRR
Another example here: https://money.stackexchange.com/a/58278/11768