Finance
Find the rate of return on an investment (IRR)
=IRR(B2:B5)How it works in Excel
- B2:B5 is the list of cash flows, one per period.
- The first number is usually negative, the money you put in.
- You need at least one negative and one positive number.
- Payments must be evenly spaced. For uneven dates, use XIRR.
- Format the cell as a percentage.
The idea in general
It is the yearly growth rate that makes the money in and the money out balance out.
What I assumed
- The cash flows are in B2:B5 and start with the amount invested as a negative.
Check the result on your own data before relying on it.