Returns the internal rate of return for a series of cash flows represented by the numbers in values. These cash flows do not have to be even, as they would be for an annuity. However, the cash flows must occur at regular intervals, such as monthly or annually. The internal rate of return is the interest rate received for an investment consisting of payments (negative values) and income (positive values) that occur at regular periods.
Syntax
IRR(values,guess)
Values is an array or a reference to cells that contain numbers for which you want to calculate the internal rate of return.
 Values must contain at least one positive value and one negative value to calculate the internal rate of return.
 IRR uses the order of values to interpret the order of cash flows. Be sure to enter your payment and income values in the sequence you want.
 If an array or reference argument contains text, logical values, or empty cells, those values are ignored.
Guess is a number that you guess is close to the result of IRR.
 Microsoft Excel uses an iterative technique for calculating IRR. Starting with guess, IRR cycles through the calculation until the result is accurate within 0.00001 percent. If IRR can't find a result that works after 20 tries, the #NUM! error value is returned.
 In most cases you do not need to provide guess for the IRR calculation. If guess is omitted, it is assumed to be 0.1 (10 percent).
 If IRR gives the #NUM! error value, or if the result is not close to what you expected, try again with a different value for guess.
Remarks
IRR is closely related to NPV, the net present value function. The rate of return calculated by IRR is the interest rate corresponding to a 0 (zero) net present value. The following formula demonstrates how NPV and IRR are related:
NPV(IRR(B1:B6),B1:B6)
equals 3.60E08 [Within the accuracy of the IRR calculation, the value 3.60E08 is effectively 0 (zero).]
Example
The example may be easier to understand if you copy it to a blank worksheet.
How to copy an example
 Create a blank workbook or worksheet.
 Select the example in the Help topic.
Note Do not select the row or column headers.
Selecting an example from Help
 Press CTRL+C.
 In the worksheet, select cell A1, and press CTRL+V.
 To switch between viewing the results and viewing the formulas that return the results, press CTRL+` (grave accent), or on the Formulas tab, in the Formula Auditing group, click the Show Formulas button.

A 
B 
Data 
Description 
70,000 
Initial cost of a business 
12,000 
Net income for the first year 
15,000 
Net income for the second year 
18,000 
Net income for the third year 
21,000 
Net income for the fourth year 
26,000 
Net income for the fifth year 
Formula 
Description (Result) 
=IRR(A2:A6) 
Investment's internal rate of return after four years (2%) 
=IRR(A2:A7) 
Internal rate of return after five years (9%) 
=IRR(A2:A4,10%) 
To calculate the internal rate of return after two years, you need to include a guess (44%) 
