CathyMauro
New Member
- Joined
- Dec 10, 2017
- Messages
- 3
Hi All:
I've been using Excel's IRR function to calculate the Internal Rate of Return on an insurance project. The simple inputs are policy year (1, 2, 3, etc.), annual premiums (shown as a negative), and the cash value for any given year.
I've then overlaid a macro that basically looks up the results for each sequentual year and pastes that value in another column to illustrate how the IRR changes over the years (using an if formula to only show the current year's cash value).
From all the research I've done on this, I've come to accept that the IRR calculator in Excel is very tempermental and doesn't always produce correct results. When I use on-line calculators with the same inputs I receive a correct answer, but Excel shows the dreaded "#NUM " result. Yes, I'm aware that I can re-set the iterations options, and that I can add a "guess" to the IRR function, but I'm still getting #NUM results.
Any suggestions on how I can overcome this issue! I've been working on it for days and am at my wit's end.
[TABLE="width: 525"]
<colgroup><col><col><col><col><col></colgroup><tbody>[TR]
[TD]First Year Analysis:[/TD]
[TD]Policy Year[/TD]
[TD]Premiums[/TD]
[TD]Cash Value[/TD]
[TD][/TD]
[/TR]
[TR]
[TD][/TD]
[TD]1[/TD]
[TD]-$4,419.00[/TD]
[TD]$20.00[/TD]
[TD="align: right"]-99.5%[/TD]
[/TR]
[TR]
[TD][/TD]
[TD][/TD]
[TD][/TD]
[TD][/TD]
[TD][/TD]
[/TR]
[TR]
[TD][/TD]
[TD][/TD]
[TD][/TD]
[TD][/TD]
[TD][/TD]
[/TR]
[TR]
[TD]Second Year Analysis:[/TD]
[TD]Policy Year[/TD]
[TD]Premiums[/TD]
[TD]Cash Value[/TD]
[TD][/TD]
[/TR]
[TR]
[TD][/TD]
[TD]1[/TD]
[TD]-$4,419.00[/TD]
[TD][/TD]
[TD][/TD]
[/TR]
[TR]
[TD][/TD]
[TD]2[/TD]
[TD]-$4,419.00[/TD]
[TD]$41.00[/TD]
[TD="align: center"]#NUM ![/TD]
[/TR]
[TR]
[TD][/TD]
[TD][/TD]
[TD][/TD]
[TD][/TD]
[TD][/TD]
[/TR]
[TR]
[TD][/TD]
[TD][/TD]
[TD][/TD]
[TD][/TD]
[TD][/TD]
[/TR]
[TR]
[TD]Third Year Analysis:[/TD]
[TD]Policy Year[/TD]
[TD]Premiums[/TD]
[TD]Cash Value[/TD]
[TD][/TD]
[/TR]
[TR]
[TD][/TD]
[TD]1[/TD]
[TD]-$4,419.00[/TD]
[TD][/TD]
[TD][/TD]
[/TR]
[TR]
[TD][/TD]
[TD]2[/TD]
[TD]-$4,419.00[/TD]
[TD][/TD]
[TD][/TD]
[/TR]
[TR]
[TD][/TD]
[TD]3[/TD]
[TD]-$4,419.00[/TD]
[TD]$62.00[/TD]
[TD="align: right"]-99%[/TD]
[/TR]
[TR]
[TD][/TD]
[TD][/TD]
[TD][/TD]
[TD][/TD]
[TD][/TD]
[/TR]
[TR]
[TD][/TD]
[TD][/TD]
[TD][/TD]
[TD][/TD]
[TD][/TD]
[/TR]
[TR]
[TD]Forth Year Analysis:[/TD]
[TD]Policy Year[/TD]
[TD]Premiums[/TD]
[TD]Cash Value[/TD]
[TD][/TD]
[/TR]
[TR]
[TD][/TD]
[TD]1[/TD]
[TD]-$4,419.00[/TD]
[TD][/TD]
[TD][/TD]
[/TR]
[TR]
[TD][/TD]
[TD]2[/TD]
[TD]-$4,419.00[/TD]
[TD][/TD]
[TD][/TD]
[/TR]
[TR]
[TD][/TD]
[TD]3[/TD]
[TD]-$4,419.00[/TD]
[TD][/TD]
[TD][/TD]
[/TR]
[TR]
[TD][/TD]
[TD]4[/TD]
[TD]-$4,419.00[/TD]
[TD]$83.00[/TD]
[TD="align: center"]#NUM ![/TD]
[/TR]
</tbody>[/TABLE]
I've been using Excel's IRR function to calculate the Internal Rate of Return on an insurance project. The simple inputs are policy year (1, 2, 3, etc.), annual premiums (shown as a negative), and the cash value for any given year.
I've then overlaid a macro that basically looks up the results for each sequentual year and pastes that value in another column to illustrate how the IRR changes over the years (using an if formula to only show the current year's cash value).
From all the research I've done on this, I've come to accept that the IRR calculator in Excel is very tempermental and doesn't always produce correct results. When I use on-line calculators with the same inputs I receive a correct answer, but Excel shows the dreaded "#NUM " result. Yes, I'm aware that I can re-set the iterations options, and that I can add a "guess" to the IRR function, but I'm still getting #NUM results.
Any suggestions on how I can overcome this issue! I've been working on it for days and am at my wit's end.
[TABLE="width: 525"]
<colgroup><col><col><col><col><col></colgroup><tbody>[TR]
[TD]First Year Analysis:[/TD]
[TD]Policy Year[/TD]
[TD]Premiums[/TD]
[TD]Cash Value[/TD]
[TD][/TD]
[/TR]
[TR]
[TD][/TD]
[TD]1[/TD]
[TD]-$4,419.00[/TD]
[TD]$20.00[/TD]
[TD="align: right"]-99.5%[/TD]
[/TR]
[TR]
[TD][/TD]
[TD][/TD]
[TD][/TD]
[TD][/TD]
[TD][/TD]
[/TR]
[TR]
[TD][/TD]
[TD][/TD]
[TD][/TD]
[TD][/TD]
[TD][/TD]
[/TR]
[TR]
[TD]Second Year Analysis:[/TD]
[TD]Policy Year[/TD]
[TD]Premiums[/TD]
[TD]Cash Value[/TD]
[TD][/TD]
[/TR]
[TR]
[TD][/TD]
[TD]1[/TD]
[TD]-$4,419.00[/TD]
[TD][/TD]
[TD][/TD]
[/TR]
[TR]
[TD][/TD]
[TD]2[/TD]
[TD]-$4,419.00[/TD]
[TD]$41.00[/TD]
[TD="align: center"]#NUM ![/TD]
[/TR]
[TR]
[TD][/TD]
[TD][/TD]
[TD][/TD]
[TD][/TD]
[TD][/TD]
[/TR]
[TR]
[TD][/TD]
[TD][/TD]
[TD][/TD]
[TD][/TD]
[TD][/TD]
[/TR]
[TR]
[TD]Third Year Analysis:[/TD]
[TD]Policy Year[/TD]
[TD]Premiums[/TD]
[TD]Cash Value[/TD]
[TD][/TD]
[/TR]
[TR]
[TD][/TD]
[TD]1[/TD]
[TD]-$4,419.00[/TD]
[TD][/TD]
[TD][/TD]
[/TR]
[TR]
[TD][/TD]
[TD]2[/TD]
[TD]-$4,419.00[/TD]
[TD][/TD]
[TD][/TD]
[/TR]
[TR]
[TD][/TD]
[TD]3[/TD]
[TD]-$4,419.00[/TD]
[TD]$62.00[/TD]
[TD="align: right"]-99%[/TD]
[/TR]
[TR]
[TD][/TD]
[TD][/TD]
[TD][/TD]
[TD][/TD]
[TD][/TD]
[/TR]
[TR]
[TD][/TD]
[TD][/TD]
[TD][/TD]
[TD][/TD]
[TD][/TD]
[/TR]
[TR]
[TD]Forth Year Analysis:[/TD]
[TD]Policy Year[/TD]
[TD]Premiums[/TD]
[TD]Cash Value[/TD]
[TD][/TD]
[/TR]
[TR]
[TD][/TD]
[TD]1[/TD]
[TD]-$4,419.00[/TD]
[TD][/TD]
[TD][/TD]
[/TR]
[TR]
[TD][/TD]
[TD]2[/TD]
[TD]-$4,419.00[/TD]
[TD][/TD]
[TD][/TD]
[/TR]
[TR]
[TD][/TD]
[TD]3[/TD]
[TD]-$4,419.00[/TD]
[TD][/TD]
[TD][/TD]
[/TR]
[TR]
[TD][/TD]
[TD]4[/TD]
[TD]-$4,419.00[/TD]
[TD]$83.00[/TD]
[TD="align: center"]#NUM ![/TD]
[/TR]
</tbody>[/TABLE]