CODEWITHSUNDEEP
excelexcel-formula
Skippy Fastol
Skippy Fastol

Reputation: 1775

What is the numerical method used to compute IRR in Excel?

I would like to know if the numerical method used to compute the IRR function in Excel is known.

Upvotes: 0

Views: 615

Answers (1)

user3177013
user3177013

Reputation:

Excel documentation states it uses Newton Raphson method for IRR calculation

But my test with sample data using Excel IRR and my own IRR code show different results using default seed value in a number of cases that leads me to think it is an altered form of Newton Raphson method they are applying to Excel IRR function

Upvotes: 2

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