Finance

IRR Calculator

Internal rate of return on cash flows.

Enter your values

ⓘ Live results

Results
IRR
10.41%
Total cash returned
$65,000.00
Net profit
$15,000.00
Simple multiple
1.3×
NPV at 10%
$489.72

Quick answer

IRR is the discount rate at which a project's net present value equals zero — the annualised return implied by its cash flows.

How to use the IRR Calculator

  1. 1Enter the upfront investment as a positive number.
  2. 2List each year's cash inflow separated by commas.
  3. 3Compare IRR to your hurdle rate.

Worked example

Using the values the calculator loads with:

Inputs

  • Initial investment50000 $
  • Yearly cash flows (comma separated)12000, 15000, 18000, 20000

Results

  • IRR10.41%
  • Total cash returned$65,000.00
  • Net profit$15,000.00
  • Simple multiple1.3×
  • NPV at 10%$489.72

Frequently asked questions

What is a good IRR?

It must exceed your cost of capital; private equity often targets 20%+.

Why can IRR be misleading?

It assumes reinvestment at the IRR itself and can produce multiple answers with alternating cash flows.

About this calculator

Results are estimates for general information. For medical, legal, structural or financial decisions, confirm with a qualified professional.