.png&w=3840&q=75)
.png&w=3840&q=75)
IRR Calculator
Internal rate of return
How It Works
Free IRR calculator to compute the internal rate of return of a series of cash flows.
The internal rate of return (IRR) is a financial metric used to evaluate the profitability of an investment or project. It is the discount rate that makes the net present value (NPV) of all cash flows equal to zero. In other words, it is the expected annual rate of return that will be earned on an investment.
IRR is commonly used in capital budgeting and investment analysis. If the IRR exceeds the cost of capital (required rate of return), the investment is considered acceptable. When comparing multiple investments, the one with the highest IRR is generally preferred, assuming similar risk levels.
Limitations of IRR include the assumption that interim cash flows are reinvested at the same rate, and it may produce multiple values for projects with non-conventional cash flows. The modified internal rate of return (MIRR) addresses some of these issues.
Results
Enter values to see results
Quick Tips
- • Results update automatically as you type
- • Use Tab to navigate between fields
- • Press Enter to calculate