"Anthony D" wrote:

Hi Allan,

IRR can use two columns e.g. IRR(a1:b6) with outgoings in column a and
income in column b.
The easiest case is for the data to be on only one row at a time (outflow or
inflow but not both at the same time).
If there are two values on the same row, it seems that the IRR function
assumes that they occur in two different periods (with the left column first)
rather than as a net flow that occurs in the same period.
If the data actually does have two flows that occur at the same time and are
in the same row (which would be the usual interpretation for two flows on the
same row), the correct result can be obtained by constructing a third column
for the net flows per period (e.g. in c1 = a1 + b1, etc.) and using that new
column for the calculation instead.

Hth
Anthony

"Allan" wrote:

How to calculate the IRR when the outgos are in one column & the income in
another?

In my case I have two life insurance polices, one costing more than the
other so there is an additional cost for the second policy. With this
additional cost there is an increase in the income (cash value) each year .
My premium is in column L and shows the annual difference in the premiums. My
cash value is in column P.

For example,in year one the difference in premium is $7708 and the
difference in the cash value is $16966. In year two the difference in
premiums is $6530 and the difference in cash value is $20699.

I think my formula should be =IRR(L6:L7,P7) where the two outflows are in
column L and the inflow is in column P.

Does this make any sense?