Financial Toolbox | ![]() ![]() |
Syntax
Description
Return = irr(CashFlow)
calculates the internal rate of return for a series of periodic cash flows. CashFlow
is the cash flow vector. The first entry in CashFlow
is the initial investment. If the cash flow payments are monthly, multiply the resulting rate of return by 12 for the annual rate of return. This function calculates only positive rates of return; for negative rates of return, Return = NaN
.
Examples
This cash flow represents the yearly income from an initial investment of $100,000:
Year 1 |
$10,000 |
Year 2 |
$20,000 |
Year 3 |
$30,000 |
Year 4 |
$40,000 |
Year 5 |
$50,000 |
To calculate the internal rate of return on the investment
See Also
effrr
, mirr
, nomrr
, taxedrr
, xirr
References
Brealey and Myers, Principles of Corporate Finance, Chapter 5
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