Newbie Question Here:
When calculating XIRR, what # do you pull from your monthly statement? Do you pull the balance under account total (available cash + committed cash + outstanding principal)?
The reason I ask is-- this # is higher than the adjusted account value on my Lending Club dashboard. I guess the adjusted account value takes into consideration the probability of defaults in the future. If/when this occurs It'll inevitably show up in my monthly statement thus affecting XIRR?
So to calculate XIRR I'd take the balance under account total (available cash + committed cash + outstanding principal) on 5/31/2016, include any deposits, and then the same account total balance on 5/31/2017?
Just making sure I understand correctly.
You are exactly right. At the end of the month, I use the total from my statement to calculate my XIRR. In between statements, I use the "Account Value" on the Summary page. Adjusted account value factors in expected charge-offs, but it does not appear on the statement.