MasterTool

IRR Calculator

Calculate irr from your own entered figures.

Loading calculator…

Currency: Amounts are calculated in the currency you select; this site does not convert between currencies and does not use live exchange rates.

What this tool does

Calculate irr from your own entered figures. Cash flows are yearly, starting at t = 0. IRR needs at least one sign change; multiple sign changes can produce multiple IRRs, of which this finds one.

How to use the IRR Calculator

  1. Enter or select cash flows (one per line, first = initial investment, negative).
  2. Read the calculated result; change any measurement to compare alternatives.

Formula

IRR is the discount rate r that solves NPV = Σ CFt/(1+r)^t = 0, found here by bisection between −99% and +1000%
flows
Cash flows (one per line, first = initial investment, negative)

Cash flows are yearly, starting at t = 0. IRR needs at least one sign change; multiple sign changes can produce multiple IRRs, of which this finds one.

Worked example

For irr calculator, the following measurements illustrate the exact method: Cash flows (one per line, first = initial investment, negative): -1000 500 500 500.

Inputs

  • Cash flows (one per line, first = initial investment, negative)-1000 500 500 500

Result

  • Internal rate of return (IRR)23.38%
  • Sum of undiscounted cash flows$500.00

Results explained

Internal rate of return (IRR)
Internal rate of return (IRR) from the formula above. Cash flows are yearly, starting at t = 0. IRR needs at least one sign change; multiple sign changes can produce multiple IRRs, of which this finds one.
Sum of undiscounted cash flows
Sum of undiscounted cash flows from the formula above. Cash flows are yearly, starting at t = 0. IRR needs at least one sign change; multiple sign changes can produce multiple IRRs, of which this finds one.

Frequently asked questions

IRR is the discount rate r that solves NPV = Σ CFt/(1+r)^t = 0, found here by bisection between −99% and +1000%

Cash flows are yearly, starting at t = 0. IRR needs at least one sign change; multiple sign changes can produce multiple IRRs, of which this finds one.

No. All numbers are entered by you or come from the dated reference table shown on this page; calculations run locally.

This is an estimate, not financial, tax or legal advice. Verify the inputs and output with official sources and a qualified professional.

Check period consistency, currency, percentage inputs and the assumptions: Cash flows are yearly, starting at t = 0. IRR needs at least one sign change; multiple sign changes can produce multiple IRRs, of which this finds one.