Calculating IRR in Quicken Windows

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rb3w89
rb3w89 Member ✭✭
edited August 2023 in Investing (Windows)

Hi all - new here.

Two questions

(1) Does Quicken calculate time weighted or money weighted IRRs?

(2) Do all accounts need to be categorized as investment account? I have some private investments I put that somehow have shown up in "Property and Debt" but those don't seem to be included in the IRR report

Many thanks.

Answers

  • Jim_Harman
    Jim_Harman SuperUser ✭✭✭✭✭
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    From what I can tell Quicken computes the money weighted IRR. It is the same as Excel's XIRR function.

    I think it only works correctly for investing accounts. You can set the Account Intent for other account types to Investing but that does not make then available in the Portfolio views.

    QWin Premier subscription
  • q_lurker
    q_lurker SuperUser ✭✭✭✭✭
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    Perhaps you need to define time-weighted and money-weighted for us, because I would have said Quicken’s calculation is time-weighted. If you vary the date of a considered addition or withdrawal, the resulting IRR varies. But I do agree with @Jim_Harman that the calculation matches Excel’s XIRR function.

    I further agree that the accounts included need to be actual investment accounts. Such account might hold cash value or one or more “securities” set to match the values you choose.

  • Tom Young
    Tom Young SuperUser ✭✭✭✭✭
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    Alter the dates or alter the dollars and the results will change. I'm not sure how to characterize this mathematical calculation as either time or money weighted. It's simply a mathematical function that's considered useful by some, dismissed by others.

This discussion has been closed.