IRR Calculator
Finds the annual return an investment’s cash flows imply.
IRR
— %
Share sends a link that reopens these numbers. Copy details pastes the full breakdown as a list.
Net cash gain —
Money multiple — ×
Reading this —
The formula
find r where Σ cash flow ÷ (1 + r)^t = investment
IRR is the discount rate that makes NPV zero. There is no direct formula, so it is found numerically.
What to watch out for
Compare it with what you could earn elsewhere at similar risk.
Frequently Asked Questions
What is IRR?
The rate at which an investment breaks even in present-value terms. 10,000 returning 3,000 a year for 5 years has an IRR of 15.24%.