# Documentation/Calc Functions/IRR

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IRR

## Category:

Financial Analysis

## Summary:

Calculates the internal rate of return for an investment. The values represent cash flow values at regular intervals, at least one value must be negative (payments), and at least one value must be positive (income).

## Syntax:

IRR(Values[; Guess])

## Returns:

Returns a real number (expressed as a percentage or a fraction) which is the internal rate of return for a series of cash flows.

## Arguments:

Values represents an array containing real numbers or a reference to a range of cells containing them.

Guess is the estimated value in percentage or fraction or a reference to the cell containing that value. An iterative method is used to calculate the internal rate of return. If you can provide only a few values, you should provide an initial guess to enable the iteration. If omitted, the value 0.1 (10%) is assumed. Warning: Because of the iterative method used, it is possible for IRR to fail and return Error 523, with "Error: Calculation does not converge" in the status bar. In that case, try another value for Guess.

## Additional details:

• If the payments take place at irregular intervals, use the XIRR function.

## Examples:

Formula Description Returns
=IRR(A1:A16;75%) where A1:A6 contains -5000,4000,9000,15000,19000,26000 The function calculates the internal rate of return for an investment mentioned from A1 to A6 and a guess of 75%. 144.44%
=IRR(A1:A16) where A1:A6 contains -5000,4000,9000,15000,19000,26000 The function calculates the internal rate of return for an investment mentioned from A1 to A6. Default value of Guess is 0.1. 144.44%

IRR