Internal Rate of Return (IRR) Calculator

Calculate IRR for investments with fixed or irregular cash flows

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Internal Rate of Return (IRR) Calculator

Calculate the Internal Rate of Return for your investments. IRR is the discount rate that makes the net present value (NPV) of all cash flows equal to zero.

💰 Investment Details

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years
months
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📊 IRR Results

Enter investment details and click "Calculate IRR" to see results.

💰 Cash Flow Details

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Year 1:
$
Year 2:
$
Year 3:
$
Year 4:
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Year 5:
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Year 6:
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Year 7:
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Year 8:
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📊 IRR Results

Enter cash flow details and click "Calculate IRR" to see results.

📚 Understanding Internal Rate of Return (IRR)

What is IRR?

IRR is the discount rate that makes the net present value (NPV) of all cash flows equal to zero. It represents the annualized rate of return for an investment.

Investment Decision

If IRR exceeds your required rate of return (hurdle rate), the investment is considered attractive. Higher IRR indicates better investment performance.

Fixed vs Irregular

Use fixed cash flow for regular payments. Use irregular cash flow when you have different amounts of cash flows in different years.

How to Use This Calculator

Fixed Cash Flow

  • Initial Investment: The amount you invest at the beginning
  • Holding Period: How long you hold the investment
  • Ending Balance: The final value of your investment
  • Periodic Cash Flow: Regular deposits or withdrawals

Irregular Cash Flow

  • Initial Investment: The amount you invest at the beginning
  • Annual Cash Flows: Enter cash flows for each year
  • Positive Values: Money received (inflows)
  • Negative Values: Money paid out (outflows)