# IRR

### Definition

Calculates the internal rate of return on an investment based on a series of periodic cash flows.

### Sample Usage

### Syntax

`IRR(cashflow_amounts, [rate_guess])`

`cashflow_amounts`

- An array or range containing the income or payments associated with the investment.`cashflow_amounts`

must contain at least one negative and one positive cash flow to calculate rate of return, and the first amount must be negative.

`rate_guess`

-**[**OPTIONAL - 0.1 by default**]**- An estimate for what the internal rate of return will be.

### Notes

Each cell in

`cashflow_amounts`

should be positive if it represents income from the perspective of the owner of the investment (e.g. coupons) or negative if it represents payments (e.g. loan repayment).`NPV`

will return zero if`discount`

is set to the result of`IRR`

using the same cash flow amounts.If the cash flows of an investment are irregularly spaced, use

`XIRR`

instead.

### See Also

`XNPV`

: Calculates the net present value of an investment based on a specified series of potentially irregularly spaced cash flows and a discount rate.

`XIRR`

: Calculates the internal rate of return of an investment based on a specified series of potentially irregularly spaced cash flows.

`PV`

: Calculates the present value of an annuity investment based on constant-amount periodic payments and a constant interest rate.

`NPV`

: Calculates the net present value of an investment based on a series of periodic cash flows and a discount rate.

`MIRR`

: Calculates the modified internal rate of return on an investment based on a series of periodic cash flows and the difference between the interest rate paid on financing versus the return received on reinvested income.

### In order to use the IRR formula, start with your edited Excellentable: