IRR Calculator
Find the periodic discount rate that makes the net present value of an investment approximately zero.
Calculate IRR
Estimate the internal rate of return (IRR) for an initial investment and periodic future cash flows.
What This IRR Calculator Calculates
Find the periodic discount rate that makes the net present value of an investment approximately zero. The calculation runs locally in your browser, so the values you enter are not sent to OfficeCalculator.Net by this tool.
Formula
IRR is the rate r that makes NPV = 0.
How to Use the Calculator
- Enter the requested values using the same time period and units where applicable.
- Review percentages, dates, or currency selections before calculating.
- Select Calculate to generate the main result and supporting metrics.
- Use Copy, Share, or Save Result Image when you need to keep the result.
Worked Example
Example: enter an initial investment of $10,000 and four annual cash inflows to estimate the annual IRR when each cash flow represents one year.
Common Uses
- Compare potential projects with similar cash-flow timing.
- Estimate the return implied by a proposed investment.
- Cross-check an IRR target against expected cash inflows.
Important Notes
This calculator is designed for planning, comparison, and educational use. Results depend on the assumptions and values entered. Financial, payroll, statistical, and policy rules can vary by organization and location, so verify important decisions against the relevant records or professional requirements.
Frequently Asked Questions
Can an investment have more than one IRR?
Yes. Unusual cash-flow patterns with multiple sign changes can produce multiple mathematical IRRs.
What period does the IRR represent?
IRR uses the same period as the cash-flow entries. Annual cash flows produce an annual periodic IRR; monthly cash flows produce a monthly periodic IRR.
Why might no IRR be found?
Some cash-flow patterns do not cross an NPV of zero within a practical rate range.