Binaryworld - How to Implement IRR Financial function like Excel IRR in SQL Server u ... [ SQL Server -> T-SQL ]

Have you ever wondered how to use same functionality of IRR function of Excel in T-SQL. Well unfortunately there is no inbuilt function in T-SQL but we can create a user defined function to implement the same logic as IRR of Excel/VB.

Click here to copy the following block

create table IncomeTable (
amt float,
d datetime
)

insert into IncomeTable values (-1000,'19980101')
insert into IncomeTable values (200,'19990101')
insert into IncomeTable values (200,'20000101')
insert into IncomeTable values (200,'20010101')
insert into IncomeTable values (200,'20020101')
insert into IncomeTable values (200,'20030101')
insert into IncomeTable values (200,'20040101')

go

create function irr(
@d  datetime
) returns decimal(18,10) as begin
declare @irrPrev float set @irrPrev = 0
declare @irr float set @irr = 0.1
declare @pvPrev float
declare @pv float
set @pvPrev = (
  select sum(amt)
  from IncomeTable
)
set @pv = (
  select sum(amt/power(1e0+@irr,cast(d-@d as float)/360e0))
  from IncomeTable
)
while abs(@pv) >= 0.0001 begin
  declare @t float
  set @t = @irrPrev
  set @irrPrev = @irr
  set @irr = @irr + (@t-@irr)*@pv/(@pv-@pvPrev)
  set @pvPrev = @pv
  set @pv = (
   select sum(amt/power(1e0+@irr,cast(d-@d as float)/365e0))
   from IncomeTable
  )
end
return @irr
end
go

select dbo.irr('19980101')

go

drop function irr
drop table IncomeTable
go

Another version of IRR can be found at

http://www.blackteaconsulting.com/journal/?p=79