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.

The internal rate of return (IRR) is a metric used in capital budgeting to estimate the return of potential investments. Here is the formula for calculating it.

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.

An Internal Rate of Return refers to the discount rate that would ensure the “Net Present Value” of an investment’s cash flow equal to zero. Investors would want to first determine the potential ...

Excel offers three functions for calculating the internal rate of return, and I recommend you use all three.

The IRR formula is complex, so it's rarely calculated manually. In most cases, investors use an IRR calculator or an Excel spreadsheet, which has a built-in function to determine a project's IRR.

The internal rate of return calculation is by definition annual, so we just have to tweak the calculation a bit to account for that. For a monthly payment schedule, use this formula: = (IRR ()+1 ...

The Difference Between Yield and IRR Calculations in Excel. When it comes to calculating interest rates for investments and bonds, the Yield and IRR formulas in Excel can quickly become your friends.