Excel: IRR() Function Returns Unexpected Result with Blanks

Last reviewed: November 2, 1994
Article ID: Q24284

SUMMARY

The Microsoft Excel IRR() function ignores blank cells. This will cause incorrect results if those blank cells represent zero amounts in the range that is specified.

Example

Suppose you have the following data on a worksheet:

   +--+---------+
   |  |    A    |
   +--+---------+
   |1 |  -$5000 |
   +--+---------+
   |2 |         |
   +--+---------+
   |3 |   $1000 |
   +--+---------+
   |4 |   $2500 |
   +--+---------+
   |5 |   $6000 |
   +--+---------+

You must enter a zero in cell A2 in order to obtain the correct result from the IRR() function.

Also note that Excel uses an iterative technique to compute IRR(), and if the successive results of IRR() do not converge to within 0.0000001 after 20 iterations, the #NUM! error is returned.

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Last reviewed: November 2, 1994
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