So the formula or function for calculating IRR in Excel is. The IRR Excel Formula. For more information please see the Excel IRR function.
In case of cash flows with unequal timing using the IRR function can be risky as it assumes that all payments occur at the end of a period and all time periods are equal.
The formula or function for calculating IRR in excel considers the initial investment as the first cash flow negative Cash flow. Understanding IRR formula in Excel Since the internal rate of return IRR is a discount rate that makes the net present value NPV of a given series of cash flows. You can use the IRR function in Excel to determine your Internal Rate of Return. There is a plethora of use with IRR function in Excel.