Calculate IRR in Excel (Formula, Examples) | IRR Calculation in Excel


In this video on IRR in Excel. We are going to discuss the IRR Formula in excel and how to use the IRR function in Excel along with practical IRR calculation examples.

𝐈𝐑𝐑 𝐢𝐧 𝐄𝐱𝐜𝐞𝐥
IRR in excel stands for Internal Rate of Return. This is one of the built-in functions available in MS Excel. This comes under the category of Financial Functions.

𝐈𝐑𝐑 𝐅𝐨𝐫𝐦𝐮𝐥𝐚 𝐢𝐧 𝐄𝐱𝐜𝐞𝐥
= IRR (range, [guess])

𝐑𝐚𝐧𝐠𝐞: is a required parameter. A range of cells that denote the series of cash flows for which the Internal Rate of Returns would be calculated.

𝐆𝐮𝐞𝐬𝐬: is an optional parameter. It denotes a number that you guess is close to the result of internal rate of return. If no value is mentioned, it takes the default value as 0.1 or 10%

“[ ]” denotes optional parameters

To know more about IRR in Excel, you can go to this 𝐥𝐢𝐧𝐤 𝐡𝐞𝐫𝐞:


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  1. Thank goodness for captions! I'm guessing this was for use by an Indian audience? I appreciate you sharing your knowledge.

  2. What if we have an initial investment of 10,000 and do not collect anything for 5 years but the end return payment is 20,000. The IRR doesn't seem correct…..


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