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.

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.

Leaving data volume aside, the built-in IRR Excel function doesn’t perform periodic calculations. Instead, it expects data to be modeled in Excel on a monthly basis, creating internal time waste and ...