IRR Calculator
Find the internal rate of return on any investment with yearly cash inflows. Enter your initial investment and each year's cash flow, and the tool solves for the discount rate that makes net present value zero - with the iteration steps shown.
Result
Enter values to see the result.
How to use
- Fill in the fields above with your own figures — results update live as you type.
- IRR is the discount rate at which the net present value of the investment plus all yearly inflows becomes zero. It is solved here by repeated trial (bisection).
- Check the result box and adjust any rate or parameter to test other cases.
Tips
- Compare the IRR against your required rate of return - invest only if IRR is comfortably higher.
- IRR assumes inflows are reinvested at the same rate, which is optimistic; treat it as one signal, not the verdict.
- Cash flows that change sign more than once can produce multiple IRRs - review the inputs if the result looks odd.
- A higher IRR does not always mean a better project when project sizes differ; check total profit too.
Note: IRR assumes inflows are reinvested at the same rate. Unusual cash flow patterns can produce more than one IRR.