IRR Function in Google Sheets

Calculate the internal rate of return for a series of cash flows using the IRR function.

IRR Function

The IRR function in Google Sheets calculates the internal rate of return for a series of cash flows that occur at regular intervals.

Syntax

IRR(cashflow_amounts, [rate_guess])
  • cashflow_amounts: An array or range of cells containing the series of cash flows. This is a required parameter.
  • rate_guess: (Optional) Your guess for what the IRR will be. Default is 0.1 (10%).

Examples

  1. Basic IRR Calculation

Calculate the IRR for a series of cash flows:

=IRR({-1000, 200, 300, 400, 500})

This will output approximately 8.70%.

Notes

  • The IRR is the discount rate that makes the net present value (NPV) of the cash flows equal to zero.
  • NPV: Calculate the net present value of a series of cash flows.
  • MIRR: Calculate the modified internal rate of return considering different rates for borrowing and reinvestment.