# IRR

IRR(values [,guess])

Returns the interest rate for a series of unequal cash flows at regular intervals (implicit reinvestment rate).

 values A series of cash flows. guess (Optional) An estimate as to what the rate will be (10%).

 REMARKS
 * The IRR stands for Internal Rate of Return.* This function uses an iterative approach to find a solution.* This function assumes all payments are at the end of each period.* A negative number represents any cash you pay out.* A positive number represents any cash you are receive (start with or end with).* If the cash flows are monthly, you need to multiply the value returned by 12 to get an annual rate of return.* The "values" series must contain at least one positive value and one negative value. Example ??* This function has an implicit assumption that all cash flows you receive are reinvested immediately at the same rate of return.* If the function does not converge, you should try a different value for the "guess".* Using a different "guess" might return a different result if there is more than one possible rate.* If there is more than one acceptable answer, then the first one it finds will be returned.* If the successive results of this function do not converge to within 0.0000001 after 20 iterations, then #NUM! is returned.* Any text, logical values or blank cells are ignored.* If an array or reference argument contains text, logical values, or empty cells, those values are ignored.* If "guess" is left blank, then 0.1 (or 10%) is used. In most cases you will not need to provide a "guess".* You can use the RATE function to return the interest rate for a series of equal cash flows at regular intervals.* You can use the MIRR function to return the interest rate for a series of unequal cash flows at regular intervals (explicit reinvestment rate).* You can use the XIRR function to return the interest rate for a series of unequal cash flows at irregular intervals (implicit reinvestment rate).* You can use the NPV function to return the net present value of a series of unequal cash flows at regular intervals.* The equivalent VBA function is VBA.IRR* For the Microsoft documentation refer to support.microsoft.com* For the Google documentation refer to support.google.com

 A B 1 =IRR({-10, 10}) = 0% -100 2 =IRR({-10, 0, 10}) = 0% 50 3 =IRR({-10, 10, 0}) = 0% 40 4 =IRR({-10, 0, 0, 10}) = 0% -30 5 =IRR({-20, 10, 10}) = 0% 25 6 =IRR({-30, 10, 20}) = 0% 7 =IRR({-60, 20, 20, 30}) = 8% 8 =IRR({-60, 20, 30, 20}) = 8% 9 =IRR({-60, 30, 20, 20}) = 9% 10 =IRR({-20, 10, 10, 10}) = 23% 11 =IRR({-20, 10, 10, 10, 10}) = 35% 12 =IRR({-50, 10, 20}) = -26% 13 =IRR({-10, 10, 20}) = 100% 14 =IRR({-20, 10, 20}) = 28% 15 =IRR(B1:B5) = -9% 16 =NPV(IRR(B1:B5), B1:B5) = 0.00 17 =IRR({40, 10}) = #NUM! 18 =IRR(B7:B8) = #NUM! 19 =IRR("-10;10") = #NUM!

 1 - What annual interest rate have you received if you pay out £10 initially and then receive £10 after one year.2 - What annual interest rate have you received if you pay out £10 initially and then receive £10 after one month.3 - What annual interest rate have you received if you pay out £10 initially and then receive £10 after one day.15 - Important - The result is 0 which proves that the IRR function has returned the correct rate.