The IRR function calculates the internal rate of return for a series of cash flows.

IRR takes 1 required argument and 1 optional argument:

Syntax: IRR(values, [guess])

#1)
Using the IRR function:
#2)
The arguments for the IRR function are:
Argument Required? Description
values Required 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 .
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.

Summary

The IRR function calculates the internal rate of return for a series of cash flows.
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