How To Calculate Difference In Months In Excel For Mac

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When using the IRR funtion in Numbers for Mac (internal rate of return), how do I let the formula know that my time period is months and not years? In the Excel function, there is an extra arugment in the function that allows you to select the dates and the cash flow for that date. In the Numbers version, you can only select the cash flows, there is no variable for the dates. I believe that the function in Numbers automatically assumes you are using years when in fact my cash flows are represented in months (monthly rent from properties). The function description in Numbers clearly states that you can use months so I must be missing something. The examples that Numbers provides for using the IRR function all assume the cash flows are in years.

For non-finance people, the time frame makes an enourmous difference. If you invest $1.00 with me today and a year from now I give you back $2.00, your return on investment is 100% (you doubled your money) and your IRR is 100% because it took exactly 1 year. But if I wait five years to give you the $2.00, the return on investment is still 100% (still doubled your money) but the IRR is 20% because it took five years. Not as good a deal for you and the IRR represents that. In these scenarios, I can calcullate the IRR using Numbers.

Hi Sam, real nice DAX-code! Here comes my M-version for the use in the query editor (PowerBI) or PowerQuery in Excel. It is a record, that you define within a newly created column (so make sure you include the square brackets). Tip: To calculate elapsed month, you can use this formula =DATEDIF(A2,B2,'m'), A2 is the start date, B2 is the end date. For elapsed years, apply =DATEDIF(A2,B2,'m')/12, and then.

But what if I give you the money back after 6 months? Or after 18 months? Or give you.25 cents each month for 8 months? Best vpn for mac and iphone. The IRR will be MUCH different. How do I tell Numbers my intervals are not in years? Thanks for any help! For two years I've been doing all my spreadsheets in Numbers and then having to calculate the resulting IRR in Excel!!

DB, I hope a simple explanation of how IRR, and all the other financial functions, work will clear this up for you. Whether you are working in Numbers or with a book of tables or with a financial calculator, the only thing that matters is the number of periods and whether events happen at the beginning or end of a period. Your periods can be seconds, days, months, years, etc. All the compounding will be done accurately if your rates are consistent with how you think of the period. If your period is a month, then express your interest rate in terms of a month and you're done (that would roughly be 1/12 of the annual rate).

If your period is a month, then express your interest rate in terms of a month and you're done (that would roughly be 1/12 of the annual rate). Thanks Jerrold, that makes sense. But I'm still having trouble duplicating a correct answer in Numbers. Lets say we have 12 periods represented in cells A1:A12.

The first period is a negative cashflow of -$100 and then the following 11 periods have positive cash flow of $10 (for cumulative gain of $10 over the entire 12 periods). When I use XIRR in excel and have the periods represent twelve years, the IRR is 1.62%. When I use the Numbers formula IRR(A1:A12), I also get 1.62%. When I change the periods in excel to twelve months, the IRR becomes 21.31%. What would the Numbers formula be to get the same result? I tried IRR(A1:A12,10%/12) and various alternatives to that, and even the MIRR function and can't duplicate excels' XIRR result of 21.31%, which I know is correct. Thanks so much for your help.