In this article, we will learn how to get the Interest rate of return using IRR function in Excel.
IRR function returns the rate of interest of the Cash flow. It takes the argument as array of Cash flow at regular interval.
Values: Array of Cash flow at regular intervals
[guess]: [optional] Expected IRR. Default is .1 (10%)
Let’s learn this through an example shown below.
Here we have Cash flow record.
Use the formula
11.91% is the rate of return of the Cash Flow array.
As we took the first amount as negative and others positive so it comes as negative.
Hope you learnt to use IRR function in Excel. Explore more articles here on Accounting. Feel free to state your queries below. We will help you.
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