IRR function
Summary
Returns the internal rate of return for a series of cash flows
Syntax
IRR(values, [guess])
The IRR function syntax has the following arguments:
Values: Required. An array or a reference to cells that contain numbers for which you want to calculate the internal rate of return.
• Values must contain at least one positive value and one negative value to calculate the internal rate of return.
• IRR uses the order of values to interpret the order of cash flows. Be sure to enter your payment and income values in the sequence you want.
• If an array or reference argument contains text, logical values, or empty cells, those values are ignored.
Guess: Optional. A number that you guess is close to the result of IRR.
• Microsoft Excel uses an iterative technique for calculating IRR. Starting with guess, IRR cycles through the calculation until the result is accurate within 0.00001 percent. If IRR can't find a result that works after 20 tries, the #NUM! error value is returned.
• In most cases you do not need to provide guess for the IRR calculation. If guess is omitted, it is assumed to be 0.1 (10 percent).
• If IRR gives the #NUM! error value, or if the result is not close to what you expected, try again with a different value for guess.
Values: Required. An array or a reference to cells that contain numbers for which you want to calculate the internal rate of return.
• Values must contain at least one positive value and one negative value to calculate the internal rate of return.
• IRR uses the order of values to interpret the order of cash flows. Be sure to enter your payment and income values in the sequence you want.
• If an array or reference argument contains text, logical values, or empty cells, those values are ignored.
Guess: Optional. A number that you guess is close to the result of IRR.
• Microsoft Excel uses an iterative technique for calculating IRR. Starting with guess, IRR cycles through the calculation until the result is accurate within 0.00001 percent. If IRR can't find a result that works after 20 tries, the #NUM! error value is returned.
• In most cases you do not need to provide guess for the IRR calculation. If guess is omitted, it is assumed to be 0.1 (10 percent).
• If IRR gives the #NUM! error value, or if the result is not close to what you expected, try again with a different value for guess.
Example
=IRR(A2:A6)
=IRR(A2:A7)
=IRR(A2:A4,-10%)
=IRR(A2:A7)
=IRR(A2:A4,-10%)