Function reference

IRR in Excel & Google Sheets

IRR is used in 1 formula pattern in this library. Browse worked examples below, or use the generator to build a custom variation for your specific data.

1 advancedBuild a custom IRR formula →

When to use IRR

Compare the implied return of a project against your cost of capital or a benchmark rate to decide whether to proceed.

Worked examples (1)

Financialadvanced

Calculate internal rate of return with IRR

=IRR(B2:B7)

Open formula IRR reference

Common errors with IRR

IRR returns

IRR needs at least one negative and one positive cash flow, and the iterative solver must converge. Try adding a guess as the second argument — =IRR(B2:B7,0.1) — or check that your cash flows change sign at least once.

IRR is a periodic rate, not annual

If your cash flows are monthly, IRR returns a monthly rate. Multiply by 12 for a rough annual rate, or use (1+IRR(...))^12-1 for the exact compounded annual rate.

Frequently asked questions

What is the difference between IRR and XIRR?

IRR assumes evenly-spaced periods. XIRR accepts actual dates for each cash flow, making it more accurate for irregular payment schedules.

Need a custom variation?

Describe your specific IRR problem and get a formula written for your exact data.

Open generator with IRR