# Manuals/calci/IRR

Jump to navigation
Jump to search

**IRR (CashFlowEvents,StartGuess,Accuracy,NoOfIterations)**

- is the array of values.
- is the number is close to the result of IRR.
- is the correct of decimal places of the result.
- is the number of iterations.
- IRR(), returns the internal rate of return for a series of cash flows.

## Description

- This function gives the internal rate of return of a cash flow stream associated with an investment.
- The Internal Rate of Return is the interest rate that makes the Net Present Value zero.
- is similar to the net present value calculation.
- In , is an values which is the array or a reference to cells that contain numbers for which you want to calculate the internal rate of return.
- is the guess which is indicating the number that you guess is close to the result of .
- must have atleast one positive and one negative value to find the internal rate of return.
- The value of can be array or reference argument contains text, logical values or empty cells, the values which are ignored.
- The value is optional, when we are omitting the value,by default it will consider the value as 10%(0.1).
- The calculation of uses an iterative method.
- The value is starting from g value and doing the calculation until the result is accurate within 0.00001%.
- Also can't find the result that works after 20 tries.
- The calculating for cash flows occurring at any other regular intervals like quarterly or semi annual by using respective factor.
- is also called effective interest rate, or rate of return.
- It is used to evaluate an investment or project.
- The function will return the result as error after the 20 tries in the iterative method.

## Examples

A | B | |
---|---|---|

1 | -100000 | -500000 |

2 | 10000 | 32000 |

3 | 28000 | 45000 |

4 | 20000 | 100000 |

5 | 32500 | 150000 |

6 | 59000 | 275000 |

7 | 1000 | 67000 |

- =IRR(A1:A6)=11.88%
- =IRR(A1:A5,20%) = -3.45%
- =IRR(B1:B7) = 7.31%%
- =IRR(B1:B5,5%)= -12.47%
- IRR([-100000,10000,28000,20000,32500,59000,1000]) = 0.12040035641121027

## Related Videos

## See Also

## References