IRR

Specifies the internal rate of return for a series of periodic cash flows (payments and receipts).

Syntax

IRR(values[, guess])

The IRR function has the following named arguments:

value)

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

guess

Optional. Variant specifying value you estimate will be returned by IRR. If omitted, guess is 0.1 (10 percent).

Remarks

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 have 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.