FinCalcs

IRR Calculator

Find the break-even discount rate of a project.

Runs locally in your browser — your numbers never leave this page

Try: Cash flows=-10000,2500,3000,4000,4500 → 5 periods, 13.41%

How to use

Internal rate of return is the rate that makes NPV zero. It is the effective yield of the cash-flow stream and is handy for comparing deals.

Method

We solve for r where Σ CFt / (1 + r)t = 0 by bisection.

FAQ

When does IRR fail?

With alternating positive and negative flows it can give multiple answers. NPV is safer then.

IRR vs ROI?

IRR includes timing of cash flows; ROI does not.

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