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IRR Calculation Error

Langston Holland

Quicken's reports overstate the current market value of a group of investments when not subtotaled. The "investments" and "returns" of individual transactions remain correct.

The effect of the error overstates the overall rate of return.

OBSERVATIONS

Selecting "Don't subtotal" results in this error.

Selecting "Show Graph" results in this error regardless of subtotal selection.

Selecting subtotal by "Security" or any other valid grouping AVOIDS this error.

BOTTOM LINE

If the "End Mkt Val" for the group is correct, the overall rate of return will be correct.

(Example attached. I generated and sent a problem report in Quicken.)

Subtotal ON.png

Subtotal OFF.png

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Comments

Quicken Laura

Hi @Langston Holland,

Thank you for sharing what you’re experiencing with the investment report. I have a few questions that will help us better understand the source of the incorrect calculation:

When did you first notice the issue?
Are you using the Investment Performance Report, or a different report?
Are you running the report from scratch or using a saved version?
If you’re using a saved report, could you please try creating a new one from scratch and let me know if the issue persists?
How are you tracking cash in your accounts, as a money market fund (security), or as cash in Quicken?
Have you tried validating your file?

Your responses will help us narrow this down. I look forward to hearing back from you.

Langston Holland

Hi Laura:

You nailed it - I was using a saved version of the Investment Performance Report. I started from scratch and it corrected the "End Mkt Val" overstatement, thus corrected the overall IRR calculation and plot as well.

On the downside, I won't be able to trust my saved reports anymore, but that's a small price to pay vs. what I've been doing in the past (such as exporting to Excel and using the XIRR function).

Thank you!

Quicken Laura

@Langston Holland,

That’s great news! I’m glad to hear the issue was resolved by creating a new report.

If you have any additional questions, please don’t hesitate to reach out.

NotACPA

@Langston Holland How many "saved reports" do you have?

Because if re-building the report eliminated this issue … why not just do that with all of the reports?

Langston Holland

I have about ten reports based on Investment Performance, a couple on Net Worth, and one on Asset Allocation. I noticed that all were affected (corrected) by regenerating from the left-hand column of predefined graphs ("from scratch"). It did NOT help to simply modify the existing user-defined reports, such as checking newly purchased securities.

I like having user-defined reports for two reasons: one is to remind myself of previous thought processes, and the other is convenience. I've been investing since the mid-80's and have a lot of history in Quicken, and find it interesting to go over the old stuff in addition to reviewing and thinking about current investments.

When it comes to important decisions, I never trust just one piece of software, but it's nice to know (now) how to get Quicken to behave. My guess is that anytime I open/close an account or buy/sell a security, it's time to verify the "End Mkt Val" at the end of the report and regenerate it if it's incorrect.

TBD. :)

Jim_Harman

This problem with the IPR was first seen early in 2024 and was fixed at some point after that See this discussion

https://community.quicken.com/discussion/7949204/investment-performance-report-overall-totals-are-incorrect-edited

If you saved the report while it was broken, the problem with that report would have carried forward into post-fix releases. I would not expect that particular problem to crop up again.

Langston Holland

Very helpful thread you pointed to and comment Jim, thanks. :)