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How to Calculate IRR in Google Sheets (Easiest Way in 2025)

January 13, 2025

In this tutorial, we will show you exactly how to calculate IRR in Google Sheets in just a few simple steps. Simply follow the steps below.

calculating irr in google sheets

Calculate IRR in Google Sheets

Follow the steps below to calculate the Internal Rate of Return (IRR) in Google Sheets.

1. Use the IRR() function

On the cell where you want the IRR result to appear. Type '=IRR(' then highlight the range of cells containing your cash flow values to reference it.

irr calculate in google sheets

Close the parentheses ')' then hit Enter. Your formula should look like this '''=IRR(C2:C7)'''.

irr in google sheets calculate

2. Interpret the result

IRR shows how much an investment could grow on average each year. An IRR of 23% indicates that an annual return of money from that investment is expected to be at 23%. Use IRRs from different investments to compare which has better potential.

We hope that you now have a better understanding on how to calculate Internal Rate of Return (IRR) from Google Sheets. If you enjoyed this article, you might also like our articles on how to print envelopes from Google Sheets' data and how to insert multiple images in google sheets.

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