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IRR Calculator
Estimate the internal rate of return of an investment using its initial cost and future periodic cash flows.
Enter one cash flow per period, separated by commas.
Internal Rate of Return0.00%
Initial Investment0.00
Periods0
NPV at Calculated IRR0.00
How to Use the IRR Calculator
Enter the initial investment and a sequence of future cash flows to estimate the internal rate of return.
Practical Example
An investment of USD 10,000 followed by several annual cash inflows may produce an IRR that can be compared with a required return or hurdle rate.
Factors That Affect the Result
Cash-flow timing, multiple sign changes, forecast accuracy and the selected period can affect IRR. Some cash-flow patterns can produce multiple or no meaningful IRR values.
Frequently Asked Questions
What does IRR represent?
The discount rate that makes NPV approximately zero.
Can IRR be negative?
Yes.
Is higher IRR always better?
Not necessarily; project scale, risk and cash-flow timing also matter.