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.

The IRR formula is complex, so it's rarely calculated manually. In most cases, investors use an IRR calculator or an Excel spreadsheet, which has a built-in function to determine a project's IRR.

Percentages aren't always easy to calculate, but one of the best tools in Excel's toolbox is calculating percentages for you. Here's how to do it.