Excel Irr Divide By Zero Error
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Forums Excel Questions IRR - #DIV/0 Error Results 1 to 6 of 6 IRR - #DIV/0 ErrorThis is a discussion on IRR - #DIV/0 Error within the Excel Questions forums, part of the Question Forums category; I usually encounter this error if the IRR divide by zero error excel average is so low that the IRR is not worth calculating (investment loss). ... LinkBack LinkBack URL
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About LinkBacks Bookmark & Share Digg this Thread!Add Thread to del.icio.usBookmark in TechnoratiTweet this thread Thread Tools Show Printable Version Display Linear Mode excel divide by zero error handling Switch to Hybrid Mode Switch to Threaded Mode Apr 22nd, 2002,01:59 PM #1 Corey New Member Join Date Mar 2002 Location Seattle, WA Posts 25 I usually encounter this error if the IRR is so low that the IRR is
Divide By Zero Error In Excel 2010
not worth calculating (investment loss). However, I have $2.4 million of investment with $5.9 million of return. I keep getting a #DIV/0 error until I try numerous "Guesses." I can get it to work with a -.10% guess. I understand that Excel will attempt 20 passes at calculating the IRR, then return an error if it cannot solve for the IRR. Is there a way to get Excel to try more than 20 attempts? I don't think changing "Iterations" in get rid of divide by zero error excel the Calculation tab will increase the number of attempts Excel will try before giving up on the IRR calculation. Any ideas? Share Share this post on Digg Del.icio.us Technorati Twitter Reply With Quote Apr 22nd, 2002,03:02 PM #2 Jay Petrulis MrExcel MVP Join Date Mar 2002 Location Chicago, IL USA Posts 2,040 On 2002-04-22 13:59, Corey wrote: I usually encounter this error if the IRR is so low that the IRR is not worth calculating (investment loss). However, I have $2.4 million of investment with $5.9 million of return. I keep getting a #DIV/0 error until I try numerous "Guesses." I can get it to work with a -.10% guess. I understand that Excel will attempt 20 passes at calculating the IRR, then return an error if it cannot solve for the IRR. Is there a way to get Excel to try more than 20 attempts? I don't think changing "Iterations" in the Calculation tab will increase the number of attempts Excel will try before giving up on the IRR calculation. Any ideas? Hi Corey, Please tell us exactly what you did. cell A1 holds -2.4 cell A2 holds 5.9 =IRR(A1:A2,.1) returns 145.83% If I add 7 zeros between the two numbers =IRR({-2.4,0,0,0,0,0,0,0,5.9},0.1) returns 11.9% I have read that if you use -0.9 as a guess, IRR will always converge to a value, whether the retrun is + or -. Also, try using XIRR if you can,
Forum Microsoft Office Application Help - Excel Help forum Excel Formulas & Functions [SOLVED] A #DIV/0! With IRR Function To get replies by our experts at nominal charges, follow this link to buy points and post your thread in our Commercial Services forum! Here is the FAQ for
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Function Thread Tools Show Printable Version Subscribe to this Thread… Mark this thread as unsolved… Rate This Thread Current Rating Excellent Good irr calculator Average Bad Terrible Display Linear Mode Switch to Hybrid Mode Switch to Threaded Mode 06-30-2006,04:10 AM #1 Sh0t2bts Guest A #DIV/0! With IRR Function Hi Guys, I have been asked for an explaination from our Finance guys http://www.mrexcel.com/forum/excel-questions/5845-irr-div-0-error.html as to why the IRR function works on one set of data but not on a second set almost identical:- I personaly have never used the IRR function so am unsure of how it works, I did read the help which said that it will ignore zeros and text cells. I have 2 sample sets of data the first in Cells A3 to A25, with this function in Cell A27 =IRR(A3:A25,0.15) Data for Cells A3:A25 0 3,450 -14,991 -10,956 5,758 3,459 http://www.excelforum.com/showthread.php?t=557216 3,574 3,618 3,442 4,452 4,543 4,541 4,646 4,782 4,857 4,876 4,586 4,752 1,280 -146 3 6 4 I get the Result of 16% which is expected. The second set of Data which is in Cells B3:B25 is:- 0 3450 -5696.25 -3205.64496 3875.768692 1620.176714 1715.67423 1737.986397 1538.93941 2522.570213 2585.826361 2553.744174 2626.034849 2725.876446 2762.244492 2737.946899 2402.134025 2518.01363 727.3978514 -144.3323887 3.337994196 5.722275765 4.291706824 With the Function =IRR(B3:B25,0.15) in Cell B27 With this I get the result #DIV.0!. I have found that if I change the value is Cell B5 from -5696.25 to a lower figure of -10,000 the Function works. Any Help on this would be great Many Thanks Mark Register To Reply 06-30-2006,10:10 AM #2 Bernard Liengme Guest Re: A #DIV/0! With IRR Function IRR and NPV are related (see Excel Help) in that NVP( irr, range) should be zero Let start with a guess of 10% in D5 And in D6 enter =NPV(D5,B3:B25) Now use Goal Seek or Solver to make D6 zero by adjusting D5 I get an answer of 187747% which is clearly an unrealised rate of return (even for Canadian banks) So it is not surprising that IRR fails to converge on this value best wishes -- Bernard V Liengme www.stfx.ca/people/bliengme remove caps from email "Sh0t2bts"
Way | Trading Add-ins For Excel | Convert Excel Into Calculating Web Pages Excel Web Pages | Produce Clean Efficient VBA Code Every Time | Build Automated Trading Models In Excel | Excel Web Pages | http://www.ozgrid.com/forum/showthread.php?t=18591 Excel Video Training Forum New Posts FAQ Calendar Forum Actions Mark Forums Read Quick Links Today's Posts What's New? Advanced Search Forum HELP FORUMS Excel General [Solved] Formulas : IRR, #NUM! and #DIV/0! Excel Training / Excel http://ankeet1.blogspot.com/2008/07/using-sql-to-calculate-xirr-internal.html Dashboards Reports If this is your first visit, be sure to check out the FAQ by clicking the link above. You may have to register before you can post: click the register link above to proceed. To divide by start viewing messages, select the forum that you want to visit from the selection below. If you don't like Google AdSense in the posts, register or log in above. Click here to view the relaunched Ozgrid newsletter. Page 1 of 2 1 2 Last Jump to page: Results 1 to 10 of 15 Thread: [Solved] Formulas : IRR, #NUM! and #DIV/0! Thread Tools Show Printable Version Search Thread Advanced Search February 25th, 2004 divide by zero #1 HarryFrohlich View Profile View Forum Posts Established Member Join Date 19th March 2003 Location Bethlehem, South Africa Posts 339 Hi everybody! I am hopeful that someone can tell me how to get around me having to keep guessing the yield (IRR(A1:A10,"guessed yield") in the formula. I sometimes get the #NUM! value, and as described in Help, I start changing the guessed value. It sometimes takes such a long time that I simply get frustrated! And at other times, this #NUM! value (especially if the yield becomes very high in my cases) changes to #DIV/0!, only to change back to #NUM! and later again to #DIV/0!. Is there a way around this with something that will give answers to the IRR formula ranging from -10% to 5,000%? Any help will be hugely appreciated! Harry Excel Video Tutorials / Excel Dashboards Reports February 25th, 2004 #2 Dave Hawley View Profile View Forum Posts Visit Homepage Administrator Join Date 24th January 2003 Location Australia Posts 31,949 Hi Harry Have you tried Tools>Goal Seek ? Merge Or Convert Excel | Trading Add-ins For Excel | Convert Excel Into Web Pages | Convert Databases Including Excel | Business Spreadsheets | Build Automatic Trading Models in Excel February 25th, 2004 #3 HarryFrohlich View Profile View Forum Posts Established Member Join Date 19th March 2003 Location B
the logic as well as the code works perfectly well!XIRR is a function in excel that calculates Internal Rate of Return based on payments/income over a period of time.Without further ado, here is the code (a slightly modified version fromBinaryWorld.net. Happy XIRRing!-- First, CREATE XIRR Table to store valuesCREATE TABLE XIRRTempData(amt float,dt datetime,guid varchar(128))gocreate function dbo.XIRR(@d datetime,@GUID varchar(128)) returns decimal(18,10)asbegin/*USAGE: select @IRR = dbo.xirr(null, guid)select @IRR IRR, @IRR * 100 'IRR %'Note: Leave the first parameter (date) null if you wish to see the XIRR calculated asof the maximum date in the dataset provided else provide a specific date to seethe XIRR calculated as the given date.Created By: Ankeet ShahCreated On: 7/16/2008*/IF @d is nullSELECT @d = max(d) from IncomeTabledeclare @irrPrev float set @irrPrev = 0declare @irr float set @irr = -0.1declare @PresentValuePrev floatdeclare @PresentValue floatset @PresentValuePrev = ( select sum(amt) from XIRRTempData where guid = @GUID )set @PresentValue = (select sum(amt/power(1e0+@irr,cast(dt-@d as float)/360)) from XIRRTempData where guid = @GUID )while abs(@PresentValue) >= 0.0001begindeclare @t floatset @t = @irrPrevset @irrPrev = @irrset @irr = @irr + (@t-@irr)*@PresentValue/(@PresentValue-@PresentValuePrev)set @PresentValuePrev = @PresentValueset @PresentValue = (select sum(amt/power(1e0+@irr,cast(dt-@d as float)/365)) from XIRRTempData where guid = @GUID )endreturn @irrendgo-- usage-- generate a GUIDDECLARE @GUID varchar(128)SELECT @GUID = NewID()-- INSERT test data INTO XIRRTempData tableinsert into XIRRTempData values(-50000, '1/1/2007', @GUID)insert into XIRRTempData values(500, '1/10/2007', @GUID)insert into XIRRTempData values(500, '6/1/2007', @GUID)insert into XIRRTempData values(500, '10/25/2007', @GUID)insert into XIRRTempData values(500, '12/31/2007', @GUID)insert into XIRRTempData values(500, '3/1/2008', @GUID)insert into XIRRTempData values(51000, '6/15/2008', @GUID)declare @IRR numeric(18,10)select @IRR = dbo.xirr(getdate(), @GUID)select @IRR IRR, @IRR * 100 'IRR %', getdate() DateParamselect @IRR = dbo.xirr(null, @GUID)select @IRR IRR, @IRR * 100 'IRR %', NULL DateParamgodrop function xirrgoselect * from XIRRTempDatagodrop table XIRRTempDatago Posted by Blogger at 1:41 PM Reactions: Labels: ankeet, exc