IRR()

Summary

Computes the internal rate of return for a series of cash flows.

Changes

Added to version 5.0.

rate = IRR(array values)

Argument Contents
values Array of numbers

Returns

The internal rate of return for the array of values.

Notes

  • The cash flows do not have to be even, as they would be for an annuity.

  • 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.

Example

values = {-70000, 12000, 15000, 18000,21000,26000}
rate = IRR(values)
ShowMessage("The internal rate of return is: " + string(rate))