IRR

Calculates the internal rate of return on an investment based on a series of periodic cash flows.

Sample Usage

IRR(A2:A25)

IRR({-4000,200,250,300,350},0.1)

Syntax

IRR(cashflow_amounts, [rate_guess])

• cashflow_amounts - An array or range containing the income or payments associated with the investment.

  • cashflow_amounts must contain at least one negative and one positive cash flow to calculate rate of return.

• rate_guess - [ OPTIONAL - 0.1 by default ] - An estimate for what the internal rate of return will be.

Notes

• Each cell in cashflow_amounts should be positive if it represents income from the perspective of the owner of the investment (e.g. coupons) or negative if it represents payments (e.g. loan repayment).

• NPV will return zero if discount is set to the result of IRR using the same cash flow amounts.

• If the cash flows of an investment are irregularly spaced, use XIRR instead.

See Also

XNPV: Calculates the net present value of an investment based on a specified series of potentially irregularly spaced cash flows and a discount rate.

XIRR: Calculates the internal rate of return of an investment based on a specified series of potentially irregularly spaced cash flows.

PV: Calculates the present value of an annuity investment based on constant-amount periodic payments and a constant interest rate.

NPV: Calculates the net present value of an investment based on a series of periodic cash flows and a discount rate.

MIRR: Calculates the modified internal rate of return on an investment based on a series of periodic cash flows and the difference between the interest rate paid on financing versus the return received on reinvested income.

Examples