IRR

Syntax

IRR (Dimension, Cash Flow, {Guess}, {Condition})

Description

The IRR function returns the Internal Rate of Return for Cash Flow. Guess can be omitted (or zero) in most cases. If IRR is unable to find the Internal Rate of Return, it returns an error value. In such cases, you can use a nonzero Guess to nudge IRR toward the correct answer.

Note:

Some cash flows have no valid Internal Rate of Return, in which case IRR returns an error value for any Guess.

If Condition is omitted, the function uses all values of Cash Flow. If Condition is included, the function uses only those values of Cash Flow for which Condition is True.

The initial values in the cash flow should be negative to represent a cash outflow. The remaining values may be all positive (representing cash inflows) or a combination of positive and negative.

Returns

The Internal Rate of Return for Cash Flow. Guess can be omitted (or zero) in most cases. If IRR is unable to find the Internal Rate of Return, it returns an error value. In such cases, you can use a nonzero Guess to nudge IRR toward the correct answer.

Example

You can calculate the internal rate of return for a data cube called IRR_OF_CASH_FLOW with this formula:

IRR(MONTHS, CASH_FLOW)

You can calculate the internal rate of return for the first 12 months for a data cube called RR_FOR_1ST_12_MONTHS with this formula:

RR(MONTHS, CASH_FLOW, 0, MEMBER(MONTHS) <= 12)

The Condition ensures that the IRR function uses only those values for which the month index is 12 or less.