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IRR Function

The IRR function is one of the financial functions. It is used to calculate the internal rate of return for a series of periodic cash flows.

The IRR function syntax is:

IRR(values [,[guess]])

where

values is an array that contains the series of payments occuring at regular periods. At least one of the values must be negative and at least one positive.

guess is an estimate at what the internal rate of return will be. It is an optional argument. If it is omitted, the function will assume guess to be 10%.

The numeric values can be entered manually or included into the cell you make reference to.

To apply the IRR function,

  1. select the cell where you wish to display the result,
  2. click the Insert Function Insert Function icon icon situated at the top toolbar,
    or right-click within a selected cell and select the Insert Function option from the menu,
    or click the Function icon icon situated at the formula bar,
  3. select the Financial function group from the list,
  4. click the IRR function,
  5. enter the required arguments separating them by commas,
  6. press the Enter button.

The result will be displayed in the selected cell.

IRR Function

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