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.

The Difference Between Yield and IRR Calculations in Excel. When it comes to calculating interest rates for investments and bonds, the Yield and IRR formulas in Excel can quickly become your friends.

IRR Examples Let us use a couple of examples to show you how simple the IRR concept is. If you invested $100 and at the end of one year you recouped a total of $115 then the IRR would be 15%.