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.

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.

Earlier, we had seen how the RATE function can be used to calculate the return on investments, whether lump-sum or periodic. This can come in handy in the calculation of SIP returns, too.

If the payments are made annually, the next step is straightforward. Use the =IRR () function in your spreadsheet to calculate the interest rate of the capital lease.