Skip to content
Excel

IRR function in Excel

Returns the internal rate of return for a series of cash flows

=IRR(values, [guess])

IRR syntax and parameters

Two arguments, one required.

  • valuesarrayRequired
  • guessnumberOptional

IRR examples

Formulas you'll actually reuse.

  1. The return of a project: −$50,000 today, then $15,000 a year for five years:

    =IRR(B2:B7)

    Result0.1524

  2. Rising cash flows as an array constant:

    =IRR({-50000, 12000, 15000, 18000, 21000})

    Result0.1098

IRR in Google Sheets

Same name — your formula ports as-is.

Try IRR in the playground

Edit the example — nothing to install.

Preloaded with the IRR formula from Example 1 — change anything and watch it respond.

Loading the editor…

IRR errors

What they mean — and the fixes.

  • #NUM!

    No sign change in the cash flows, or the search didn't converge — the first value must be negative; pass a guess if the flows are unusual.