Business Financeโฑ 3 min

IRR Calculator

Calculate the Internal Rate of Return (IRR) for a series of cash flows to evaluate investment viability.

Free โ€ข Accurate โ€ข Instant Results

IRR Inputs

$
$

Internal Rate of Return

๐Ÿ“Š

12.38%

Total Cash Flow

๐Ÿ’ฐ

$140,000

Initial Investment

๐Ÿฆ

$100,000

Investment Multiple

โœ–๏ธ

1.40x

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AI Insights

Personalized analysis based on your inputs

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IRR Interpretation

IRR is the discount rate where NPV equals zero โ€” compare it to your required rate of return or cost of capital to judge if this 5-year investment is worthwhile.

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Formula Used

Internal Rate of Return

IRR solves: 0 = โˆ’Initial + ฮฃ [CFโ‚œ / (1+IRR)^t]

Variables

IRR= The discount rate that makes NPV = 0

Example

Found via iteration; approximates the annualized return of an investment's cash flows

Frequently Asked Questions

CAGR assumes a single lump-sum growth. IRR accounts for multiple cash flows occurring at different times, making it better for projects with ongoing cash flows.

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Disclaimer: This calculator is for informational and educational purposes only. Results are estimates based on inputs you provide. They are not financial, tax, investment, or legal advice. Consult a qualified financial professional before making financial decisions. Actual results may vary based on market conditions, tax laws, and individual circumstances.