Formulas > =IRR()

How To Use IRR() Function in Google Sheets


Calculates the internal rate of return on an investment based on a series of periodic cash flows.

Common questions about the IRR formula include:
1. What is the definition of the IRR formula?
2. What is the formula for calculating IRR?
3. How do I use the IRR formula in Excel or Google Sheets?

The IRR formula can be appropriately used to calculate the internal rate of return for an investment project. This rate is used to compare different investments and gauge the potential profitability of each one. It can also be used to predict the rate of return on specific investments.

The IRR formula can be commonly mistyped as IR instead of IRR. Additionally, the formula might not be correctly entered, resulting in a formula error.

Some common ways the IRR formula is used inappropriately is if the user puts the wrong information into the formula, does not enter the correct number of investment periods, or does not use the right parameters.

Common pitfalls when using the IRR formula include not entering the correct information in the formula, not setting the time period correctly, or not understanding the formula.

Common mistakes when using the formula include not entering the required information correctly, not factoring in the time periods correctly, neglecting to select the right time period, or not understanding how to use the formula correctly.

Common misconceptions people might have with the IRR Formula include thinking that the IRR score shows the investment as being profitable, instead of predicting the profitability. Additionally, some people might think that it is the only measure used to gauge the performance of an investment.

How To Actually Use IRR() in Sheets

IRR(cashflow_amounts, [rate_guess])

Looking for a video tutorial? Members can email me anytime! Check out the blogs below for more info on this formula. Or generate your formula. Find more formulas here at

Learn more about the IRR() formula:

Google Sheets IRR Function | Calculate Internal Rate of Return | Google Sheets Functions

Google Sheets IRR function returns the interest rate by which an investment would grow based on the investment, any other cash outflows, and the cash inflows at regular periods. The IRR function helps to find the investment option, from two or more investment choices, with a better profitability.

Generate a IRR() formula for your needs with AI

Google Sheets Formula Generator

Whatever you need to do in sheets, you can generate a formula. Use the Better Sheets Formula generator to create a formula for any need. Completely free for members. Free to try for non-members.


Looking for more help inside sheets get the free Add-on: Asa. Ask Sheets Anything. Go ahead, ask it any problem you migth have. Bring your own APIKEY and generate formulas inside of Google Sheets.