IRR Calculator
Find the internal rate of return (IRR) of an investment from its cash flows.
Change the values and press Calculate to work out your own figures.
Enter the initial investment and each year's cash flow.
Show the working
- IRR: the rate where the NPV is 0
How to use it
Enter the initial investment and each year's cash flow.
Enter amounts without commas or with them; rates are percentages (5 for 5%). Negative amounts are allowed where a sign means money paid out.
Key facts
IRR = the rate r where −investment + Σ cash flowₜ ÷ (1 + r)^t = 0
Questions
What is the IRR of −$40,000 then $10,000, $20,000 and $30,000?
19.4377%.
Formulas
IRR = the rate r where −investment + Σ cash flowₜ ÷ (1 + r)^t = 0
Sources
Limitations
- Results are estimates for planning, not offers or financial advice; lenders and banks may round, count days or time payments differently.
- Rates are nominal annual rates compounded as you choose; payments at a different frequency use the equivalent periodic rate.