IRR Function Explained
The IRR Function in Microsoft Excel calculates the internal rate of return for a series of cash flows. It takes as arguments a series of cash flows that occur at regular intervals and returns the internal rate of return as a percentage. The internal rate of return is the discount rate that makes the net present value of all cash flows from a project equal to zero.
IRR Function Syntax
IRR(values, [guess])
- values – An array or a reference to cells that contain numbers for which you want to calculate the internal rate of return.
- guess – (optional) A number that you guess is close to the result of IRR. If omitted, it is assumed to be 0.1 (10 percent).