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Bisection is used as the sole IRR calculation method. A null is returned for IRRs outside of the range 1,000,000,000 percent and 100 percent. Using an upper limit that is not a function of the number of days in the period and periods greater than a month is supported. An additional option in the IRR calculation supports annual IRRs. All returns calculated using IRR can be tied out in Excel by using Goal Seek, Solver, and XIRR.

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IRR Formula

The formula for the basic IRR calculation is:
MVE = MVB x ( 1 + IRR ) + CF₁ x ( 1 + IRR ) ^W1 … + CF_n x ( 1+ IRR ) ^Wn
where:

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As always, the time-of-day assumption is factored into the number of days present.

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Input Validation

Some cases cannot be solved using IRR and as a result, return null values. A check of calculation inputs returns a null value in the following scenarios:

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