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IRR Calculator

Find the internal rate of return on a series of cash flows: the discount rate that brings net present value to zero.

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Cash flows

Start with year 0. Use negative numbers for money going out.

Internal rate of return

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Enter your cash flows to see the IRR.

Periods-
Total invested-
Total returned-
Net cash flow-

What IRR tells you

The internal rate of return is the discount rate that makes the net present value of a series of cash flows equal to zero. In plain terms, it is the yearly return a project earns on the money you put into it.

IRR vs. NPV

NPV gives you a dollar value. IRR gives you a percentage. Investors compare IRR across projects to decide where capital goes. As a rule, accept projects whose IRR is higher than your cost of capital, and use NPV to see how much value each one adds.

How to use the calculator

  • Enter one cash flow per line, starting with year 0.
  • Use a negative number for the initial investment and any later outflows.
  • Each line after the first counts as one period, usually a year.

Frequently asked questions

What if my cash flows change sign more than once?

IRR can have more than one solution when cash flows switch between negative and positive several times. The calculator returns one root and warns you. For unusual patterns, use the modified IRR (MIRR) instead.

Can I use monthly cash flows?

Yes. The result is then a monthly rate. Compound it to get the yearly figure: (1 + monthly rate) to the power of 12, minus 1.

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