1
Enter the Initial Outflow
Add the amount invested at period zero as a positive number.
Investment Return Analysis
Internal Rate of Return Calculator
Evaluate a project or investment using an initial outflow and a series of future cash flows. Calculate periodic IRR, annualised IRR, NPV, MIRR, net profit and estimated payback time.
Dynamic cash-flow periods
IRR and MIRR
NPV and payback analysis
Calculate Internal Rate of Return
Enter cash flows at equal monthly, quarterly or annual intervals.
Investment Return Summary
Analysis calculated
Periodic IRR
0.000%
Annualised IRR
0.000%
Net present value
$0.00
Annualised MIRR
0.000%
Total inflows
$0.00
Total net profit
$0.00
Simple payback
Not reached
Discounted payback
Not reached
Benchmark comparison
Enter the cash-flow details to compare the calculated return with your required rate of return.
IRR is a modelled result based on the timing and amounts entered.
About This Calculator
What Is an Internal Rate of Return Calculator?
An IRR calculator estimates the discount rate at which the present value of future cash flows equals the initial investment.
Internal rate of return is commonly used to compare projects, business investments, property opportunities and other cash-flow decisions. The calculation considers both the amount and timing of each projected cash flow.
A higher IRR does not automatically make an investment better. Risk, project size, financing, taxes, assumptions and the reliability of projected cash flows should also be considered. NPV is useful alongside IRR because it shows the estimated value created at a selected required rate of return.
This calculator also reports MIRR. Modified internal rate of return uses separate finance and reinvestment rates, which can provide a more realistic return estimate when the standard IRR assumption is unsuitable.
IRR Relationship
IRR is the value of r that reduces the net present value of all cash flows to zero.
0 = Σ [Cash Flowt ÷ (1 + r)t]
Simple Analysis Process
How the IRR Calculator Works
Add the investment and cash flows in the order they are expected to occur, then compare the result with your benchmark return.
2
Add Future Cash Flows
Enter expected inflows and any later outflows at equal time intervals.
3
Set Benchmark Rates
Add the required return and optional MIRR finance and reinvestment rates.
4
Review the Analysis
Compare IRR, NPV, MIRR, profit and payback estimates before making a decision.
Interpreting the Results
Important IRR Considerations
Compare IRR with a Hurdle Rate
An IRR above the required return may support acceptance, while a lower IRR may indicate that the projected return is insufficient.
Watch for Multiple Sign Changes
Cash flows that repeatedly switch between positive and negative can produce multiple IRRs or make IRR difficult to interpret.
Use NPV with IRR
IRR is a percentage, while NPV estimates value in money terms. Reviewing both gives a more complete perspective.
Frequently Asked Questions
Internal Rate of Return Calculator FAQs
IRR estimates the periodic discount rate at which an investment's projected net present value equals zero.
A good IRR depends on risk, financing costs and available alternatives. It is normally compared with a required return or hurdle rate rather than judged in isolation.
IRR requires at least one negative and one positive cash flow. Some cash-flow patterns have no real IRR, while others can have more than one.
Standard IRR assumes interim cash flows are reinvested at the IRR. MIRR instead uses separate finance and reinvestment rates.
Yes. The calculator shows the periodic IRR and converts it into an effective annual rate using the selected frequency.
Not automatically. Risk, taxes and fees must be reflected in the cash-flow estimates or evaluated separately.
Note: The results depend entirely on the cash-flow
assumptions entered. This tool provides general financial estimates and
is not investment, accounting, tax or legal advice.