IRR

Returns the internal rate of return for the specified series of cash flows.

Syntax

IRR( NumberSequence values, [Number guess = 0.1] ) → Number

Parameters

values

Required. A list of values specifying the cash flows. The list must contain at least one negative value (a payment) and one positive value (a receipt).

guess

Optional. The estimated return value. If omitted, guess is assumed to be 0.1 (10 percent).

Remarks

The internal rate of return is the interest rate received for an investment consisting of payments and receipts that occur at regular intervals.

The IRR function uses the order of values within the array to interpret the order of payments and receipts. Be sure to enter your payment and receipt values in the correct sequence. The cash flow for each period doesn't have to be fixed, as it is for an annuity.

IRR is calculated by iteration. Starting with the value of guess, IRR cycles through the calculation until the result is accurate enough or until the maximum number of iterations. In the later case IRR fails and returns #VALUE!.

See Also

Function Reference
NPV Function
RATE Function