IRR Calculator
Calculate Internal Rate of Return for Your Investments
Internal Rate of Return Calculator
Internal Rate of Return
What is Internal Rate of Return (IRR)?
Internal Rate of Return (IRR) is a financial metric used to evaluate the profitability of potential investments. It represents the discount rate that makes the net present value (NPV) of all cash flows from a particular project equal to zero. In simpler terms, IRR is the break-even interest rate at which an investment neither gains nor loses money.
Key Features of Our IRR Calculator
🎯 Accurate Calculations
Uses advanced algorithms to provide precise IRR calculations with multiple cash flows.
📱 Mobile Friendly
Fully responsive design that works perfectly on all devices and screen sizes.
⚡ Instant Results
Get immediate calculations without any delays or page refreshes.
🔒 Privacy Focused
All calculations are performed locally in your browser - no data is stored or transmitted.
💰 Multiple Cash Flows
Support for unlimited cash flow periods to analyze complex investment scenarios.
🆓 Completely Free
No registration, no hidden fees, and no limitations on usage.
How to Use the IRR Calculator
- Enter Initial Investment: Input the amount of money you initially invest (this should be a negative value as it's an outflow)
- Add Cash Flows: Enter the expected cash inflows for each period (monthly, quarterly, or yearly)
- Add More Periods: Use the "Add Cash Flow" button to include additional periods as needed
- Calculate: Click the "Calculate IRR" button to get your result
- Interpret Results: The result shows the IRR as a percentage - higher percentages indicate better investment opportunities
Benefits of Using IRR Analysis
- Investment Comparison: Compare different investment opportunities on an equal basis
- Profitability Assessment: Determine if an investment will generate sufficient returns
- Risk Evaluation: Higher IRR typically indicates higher potential returns but may involve more risk
- Capital Budgeting: Make informed decisions about which projects to pursue
- Performance Measurement: Evaluate the success of past investments
Understanding IRR Results
- IRR > Cost of Capital: Investment is potentially profitable and should be considered
- IRR < Cost of Capital: Investment may not be worthwhile as it doesn't meet return requirements
- IRR = Cost of Capital: Investment breaks even - neither profitable nor loss-making
- Higher IRR: Generally indicates a more attractive investment opportunity
IRR Calculator Applications
- Real estate investment analysis
- Business project evaluation
- Stock and bond investment decisions
- Capital expenditure planning
- Merger and acquisition analysis
- Startup and venture capital investments