---
title: "IRR function in Excel: syntax and examples | PracticeExcel"
description: "How to use IRR in Excel and Google Sheets: the internal rate of return of an investment from its cash flows."
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> Index of every page on this site: [llms.txt](https://practiceexcelonline.com/llms.txt)

# **The IRR function**

Returns the internal rate of return of a series of cash flows, the discount rate at which their net present value is 0.

=

IRR(

## **Syntax**

```
IRR(values, [guess])
```

<dl><dt>**values **</dt>
<dd>The cash flows in order, one per period, with at least one negative (the investment) and one positive.</dd>
<dt>**guess **(optional)</dt>
<dd>A starting guess for the rate. Leave it out for 10%.</dd></dl>

## **Examples**

D1=IRR(B1:B4)

|  | A | B | C | D |
| --- | --- | --- | --- | --- |
| 1 | Year 0 | -1000 |  | **0.09701** |
| 2 | Year 1 | 400 |  | |
| 3 | Year 2 | 400 |  | |
| 4 | Year 3 | 400 |  | |

B1=IRR({-100;110})

|  | A | B |
| --- | --- | --- |
| 1 |  | **0.1** |

## **Practice IRR**

- [**1****Rate of return with IRR**→](https://practiceexcelonline.com/practice/investments/irr-rate-of-return)

## **Questions**

<details>

<summary>

### What is the difference between IRR and NPV?

</summary>

NPV gives an amount at a discount rate you choose. IRR gives the rate at which that amount is exactly 0. A project is worth doing at your required rate if its IRR is higher than that rate.

</details>

## **Related functions**

- [**NPV**](https://practiceexcelonline.com/functions/npv)
- [**PMT**](https://practiceexcelonline.com/functions/pmt)

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