Excel IRR Function

Excel IRR Function

Summary

The Excel IRR function is a financial function that returns the internal rate of return (IRR) for a series of cash flows that occur at regular intervals.

Purpose

Calculate internal rate of return

Return value

Calculated return as percentage

Syntax

=IRR (values, [guess])

Arguments

Usage notes

The internal rate of return (IRR) is the interest rate received for an investment with payments and income occurring at regular intervals (i.e. monthly, annual). Payments are expressed as negative values and income as positive values. Amounts can vary, but intervals need to be the same. The first value is negative, since it represents an outflow.

Excel uses iteration to arrive at a result, starting with the guess (if provided) or with .1 (10%) if not. If an accurate IRR can't be calculated after a fixed number of iterations, the #NUM error is returned. A better guess will prevent this error.

Notes

 

Excel IRR Function

Summary

The Excel IRR function is a financial function that returns the internal rate of return (IRR) for a series of cash flows that occur at regular intervals.

Purpose

Calculate internal rate of return

Return value

Calculated return as percentage

Syntax

=IRR (values, [guess])

Arguments

Usage notes

The internal rate of return (IRR) is the interest rate received for an investment with payments and income occurring at regular intervals (i.e. monthly, annual). Payments are expressed as negative values and income as positive values. Amounts can vary, but intervals need to be the same. The first value is negative, since it represents an outflow.

Excel uses iteration to arrive at a result, starting with the guess (if provided) or with .1 (10%) if not. If an accurate IRR can't be calculated after a fixed number of iterations, the #NUM error is returned. A better guess will prevent this error.

Notes