# Search # IRR

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: • di is the number of days from the start of the first time period
• Pi 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.

## Example

`IRR = IRR(Cash Flow, 0.1)` Note that the IRR result does not require a timescale dimension: It is a single % result based on cash flows spanning the entire timescale.

### 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.  