The Excel IRR function is used to return the internal rate of return based on a series of investments. The investments must occur at regular intervals such as weekly, bi-weekly or monthly.
The syntax for the IRR function is:
=IRR(values, [guess])
| Argument | Purpose |
|---|---|
| values | The range of cells containing the investments that you want to calculate the internal rate of return |
| guess | An estimate internal rate of return of the investment. This argument is optional and if omitted Excel assumes an estimated irr of 10% |
The example below shows the IRR function being used to return the internal rate of return for the cash flow in cell range B3:B8.
