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.

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.

Excel and Google Sheets have three functions to calculate the internal rate of return: IRR, XIRR, and MIRR. Learn how these functions can calculate investment returns.

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.

Calculation of Internal Rate of Return (IRR) The IRR formula can be very complex depending on the timing and variances in cash flow amounts.

Calculating the IRR for a project with an initial outlay and single cash flow is very easy to do. It's also very practical for measuring the returns.

However, IRR can sometimes be overly-optimistic and for that reason, some traders choose to use the modified internal rate of return (MIRR) instead. A popular way that IRR is used in capital budgeting ...