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.

In this tutorial, I will show you how to calculate IRR in Excel, how is it different from another popular measure NPV, and different scenarios where you can use in-built IRR formulas in Excel.

The IRR Function calculates the internal rate of return for a sequence of periodic cash flows. As a worksheet function, IRR can be entered as part of a formula in a cell of a worksheet, i.e., =IRR …

Apr 27, 2025 · Excel and Google Sheets have three functions to calculate the internal rate of return: IRR, XIRR, and MIRR. Learn how these functions can calculate investment returns.

Use the IRR function in Excel to calculate a project's internal rate of return. The internal rate of return is the discount rate that makes the net present value equal to zero.

Jul 23, 2025 · But calculating it manually can be tricky—thankfully, Excel’s IRR function makes it easy. Whether you’re analyzing uneven cash flows, comparing multiple projects, or just …

Jul 5, 2024 · Here, you will find ways how to calculate IRR in Excel using different functions and using Goal Seek feature for different type of cash flow.

Read the article until the end to learn all the tried and tested methods of calculating IRR in Excel with real-world datasets. I’ll also show short steps and illustrations so you can follow along with …

Aug 29, 2024 · 1. Write the IRR function. 2. Enter an estimate on the second argument of the expected IRR. 3. See the results. Read more about IRR here.

Dec 2, 2025 · Learn how to calculate IRR in Excel using IRR and XIRR functions. Includes step-by-step examples, calculation tables, downloadable templates, and common formula errors to …