IRR Function

Returns the internal rate of return as a percentage.

Category:	Financial
Returned data type:	DOUBLE

Table of Contents

Syntax

IRR(freq, c1, c2 [..., cn])

Required Arguments

freq

is numeric, the number of payments over a specified base period of time that is associated with the desired internal rate of return.

Range	freq > 0.
Data type	DOUBLE
Tip	The case freq = 0 is a flag to allow continuous compounding.

c1, c2[ ..., cn]

are numeric, the optional cash payments.

Requirement	At minimum, two cash payment values are required.
Data type	DOUBLE

Details

The IRR function returns the internal rate of return over a specified base period of time for the set of cash payments c1, c2, …, cn. The time intervals between any two consecutive payments are assumed to be equal. The argument freq > 0 describes the number of payments that occur over the specified base period of time. The number of notes issued from each instance is limited.

Comparisons

The IRR function is identical to INTRR, except that in the IRR function, the internal rate of return is a percentage.

Example

For an initial outlay of $400 and expected payments of $100, $200, and $300 over the following three years, the annual internal rate of return as a percentage can be expressed by the following program:

select irr(1,-400,100,200,300);

select irr(1,-400,100,200,300);

The value that is returned is 19.437709963.