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.

Q. I have prepared projections for a proposed project, and I want to calculate the internal rate of return. Instead of using Excel’s IRR function, should I use simple math formulas so others can ...

Capital lease interest can be computed using the IRR function in a spreadsheet. Adjust IRR formula for payment frequency to get correct annual interest rates.

The Yield function is helpful for tracking interest income on bonds. Whereas IRR simply calculates interest rate gains, Yield is best suited for calculating bond yield over a set period of maturity.