IRR Calculator
Calculate the Internal Rate of Return based on a series of cash flows.
Cash Flows (Year 0 onward)
How This IRR Calculator Works
The Internal Rate of Return is a key financial metric used to measure the profitability of an investment. It is the discount rate at which the Net Present Value becomes zero. IRR is widely used in business decisions, investment analysis, capital budgeting, and project comparisons.
This tool uses a numerical method to compute IRR by testing different discount rates until the total discounted cash flow equals zero. The process is done instantly inside your browser without storing any data.
A higher IRR indicates a more profitable investment. If the IRR is greater than your required return rate, the investment is considered financially acceptable.
Frequently Asked Questions
What is IRR?
IRR is the annual return rate at which the Net Present Value of future cash flows becomes zero.
What does a high IRR mean?
A higher IRR means the investment returns more value and is generally considered better.
Can IRR be negative?
Yes. A negative IRR indicates the project or investment results in a financial loss.
Is my data stored?
No. All calculations happen locally on your device only.