Written and reviewed by FormulaCraft Team. Each formula on this page is run through our verification engine before publishing.
Last reviewed:
IRR
IRR finds the discount rate at which the net present value of a series of cash flows equals zero. The cash flow range must include at least one negative value (the initial investment) and one positive value (a return). Use it to evaluate and compare investment opportunities or capital projects.
Excel
=IRR(B2:B6,0.1)Google Sheets
=IRR(B2:B6,0.1)Try it with your data
Edit the grid or formula, then run it through a real spreadsheet engine — no signup.
Sample data — click any cell to edit
Runs server-side · free · no signup
How it works
- 1List all cash flows in order starting with the initial investment (negative) in column B.
- 2Type =IRR(B2:B6) or =IRR(B2:B6, guess) where guess is an optional starting estimate (e.g. 0.1).
- 3Compare the result to your cost of capital: if IRR > cost of capital, the investment is worth taking.
Need a version for your data?
Try: “Find the internal rate of return for a 5-year investment project”