Calculates the internal rate of return of a series of future cash flows.

The second parameter is an optional guess at the IRR for use when multiple solutions exist.

To arrive at a solution there must be both negative and positive cash flows. Normally the initial investment is entered as a negative number for cash flow out and the returns entered as cash flow in. Since the formula for IRR is iterative, there may be multiple solutions. In that case a guess of the rate can be entered and the program will choose the solution closest to the guess.

For example

IRR(Cashflow,0.1)

sets an initial guess at 10% per period.

#### IRR using dates

Calculates the internal rate of return of a series of cash flows based on the transactions occurring on specified dates.

IRR(Cashflow, Dates, Transactions, Guess)

- Cashflow: Numeric cash values. Must have at least one negative and one positive value.
- Dates: The date of each transaction
- Transactions: The name of the list containing the schedule of transactions.
- Guess: A guess at the IRR. For example enter a guess as 0.1 for a 10% IRR. In the event of multiple solutions to the IRR formula, the program will choose the solution closest to the guess.

The IRR result does not require a time dimension.

IRR is the iterative solution to the equation below:

- d
_{i}is the number of days from the start of the first time period - P
_{i}is the payment in the ith period. - N is the number of payments in and out over the entire timescale

## Syntax

IRR(c, [g])

where:

- c: Cash flow: line item
- g: Estimate of Rate: number (optional)

#### IRR using dates

IRR(c, d, t, [g])

where:

- c: Cash flow
- d: Dates
- t: Transaction List
- g: Estimate of Rate

## Format

Input Format | Output Format |
---|---|

c: Number d: Date t: List item g: Number |
Number |

## Arguments

The function uses the following arguments:

- c: Cash flow: Numeric line item, property, or expression
- d: Date: Hard-coded date, date variable, or line item
- t: Transaction List: List-formatted line item
- g: Estimate of Rate: Numeric line item, property, or expression (optional)

## Constraints

The function has the following constraints:

- Cash flow parameter must have at least one negative and one positive value.

## Excel equivalent

## Example

IRR = IRR(Cash Flow, 0.1)

### IRR Using Dates

In the example shown, a series of cash transactions and the dates are entered in the module named *Schedule*. This module has a list named *Transactions* as one of its dimensions. The IRR and NPV are calculated for each project.