IRR Formula Excel

This Excel Tutorial demonstrates how to use the Excel IRR Function in Excel to calculate the internal rate of return of a set of periodic cash flows, with formula examples.

IRR Function Description:

The IRR Function Calculates the internal rate of return for a series of periodic (consistent timing) cash flows. If the cash flows are not periodic, use the XIRR function instead.

Formula Examples:

irr function examples

ExampleFormulaResult
1=IRR(B5:B20,D5)7.93082611605345E-02

Syntax and Arguments:

The Syntax for the IRR Formula is:

Function Arguments ( Inputs ):

values – The series of payments, all occuring at equal time increments.

guess – A guess of the IRR. Default is .1.

Additional Notes

Use the IRR Function to calculate the Internal Rate of Return of an investment.

Periodic cash flows are required. Cash flows most occur on a consistent basis each period.

The result of the IRR Function may appear as a decimal. Change the cell Number Formatting to Percentage to display the function result as a percentage:
percentage formatting excel shortcut

IRR Examples in VBA

You can also use the IRR function in VBA. Type:
application.worksheetfunction.irr(values,guess)
For the function arguments (values, etc.), you can either enter them directly into the function, or define variables to use instead.

Return to the List of all Functions in Excel

How to use the IRR Function in Excel:

To use the AND Excel Worksheet Function, type the following into a cell:
=AND(
After entering it in the cell, notice how the AND formula inputs appear below the cell:
irr formula syntax
You will need to enter these inputs into the function. The function inputs are covered in more detail in the next section. However, if you ever need more help with the function, after typing “=IRR(” into a cell, without leaving the cell, use the shortcut CTRL + A (A for Arguments) to open the “Insert Function Dialog Box” for detailed instructions:
how to use the irr function in excel

For more information about the IRR Formula visit the
Microsoft Website.

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