You can calculate this with the RATE function by filling its five fields — Nper (number of periods - 12), Pmt (periodic investment – 5000 with a minus sign), Pv (present value – 0), Fv ...

We will use the same example we used above. Open Excel and enter -100 (that is negative 100) in cell A1, 0 (that is zero) in A2 and 132.25 in A3. In cell A4 enter =IRR (A1:A3) then press the Enter ...