Learn how to calculate the internal rate of return (IRR) in Excel and how it’s used to determine whether a capital investment can be profitable.

Excel and Google Sheets have three functions to calculate the internal rate of return: IRR, XIRR, and MIRR. Learn how these functions can calculate investment returns.

1. Excel’s IRR function. Excel’s IRR function calculates the internal rate of return for a series of cash flows, assuming equal-size payment periods. Using the example data shown above, the IRR ...

Find the IRR in Excel by employing the IRR function, then use it as the discount rate that causes NPV to equal zero. Use What-If analysis, a built-in calculator in Excel, to solve for the discount ...

A4 gives the IRR Excel function that actually does the calculation for you. So for capital budgeting decisions, if all else remains equal, then pursuing the project with the highest IRR would be ...

The internal rate of return, sometimes called the "yield criterion ... The best way to compute an internal rate of return is by using a spreadsheet such as Excel, or a financial calculator.

When it comes to calculating interest rates for investments and bonds, the Yield and IRR formulas in Excel can quickly become your friends. Whether you're considering buying a bond or investing in ...

Now I just hit enter, and Excel calculates that my internal rate of return on my Microsoft stock was 0.2373. This result is actually a percentage, an IRR of 23.73%.

Calculating the internal rate of return, or IRR, of an investment is a powerful tool for businesses. ... Excel will default to a 10% IRR guess if one is not provided.

Calculating the IRR, or an investment’s expected annual rate of growth, is no easy task for investors. Find the formula and tips for calculating IRR.