IRR Function (internal rate of return)

IRR returns a value specifying the internal rate of return for a series of periodic cash flows (payments and receipts).

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 does not need 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 to within 0.00001 percent. If IRR cannot find a result after 20 tries, it fails.

Internal rate of return calculator  Enter one value per line Data Array Guess Decimal places 0 1 2 3 4 6  Result Internal rate

Example

Description of IRR parameters

Data Array

Array of Double specifying cash flow values. The array must contain at least one negative value (a payment) and one positive value (a receipt).

Guess

Object specifying value you estimate will be returned by IRR. The default guess is 0.1 (10 percent).