IRR Function
The Excel IRR function is used to return the internal rate of return based on a series of investments. The investments must occur at regular intervals such as weekly, bi-weekly or monthly.
The syntax for the IRR function is:
=IRR(values, [guess])
Argument |
Purpose |
|---|---|
values |
The range of cells containing the investments that you want to calculate the internal rate of return |
guess |
An estimate internal rate of return of the investment. This argument is optional and if omitted Excel assumes an estimated irr of 10% |
The example below shows the IRR function being used to return the internal rate of return for the cash flow in cell range B3:B8.
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