Calculate the Internal Rate of Return (IRR) for investments and business projects with equal interval cash flows. Analyze profitability, compare investment opportunities and make informed financial decisions using our free online IRR Calculator.
Enter your initial investment as a negative value followed by future cash inflows occurring at equal time intervals.
| Cash Flow | Period | Action |
|---|---|---|
Enter your initial investment as a negative amount followed by all expected positive cash inflows at equal intervals.
The calculator finds the discount rate where the Net Present Value (NPV) of all cash flows equals zero.
Review the calculated IRR, profitability, investment performance and decision insights instantly.
NPV = Σ [ Cash Flow ÷ (1 + IRR)t ] = 0
IRR is the discount rate that makes the Net Present Value (NPV) of all cash flows equal to zero. It assumes that all cash flows occur at regular intervals.
The Internal Rate of Return (IRR) is the discount rate at which the Net Present Value (NPV) of all future cash flows becomes zero. It is one of the most widely used financial metrics for evaluating investments, capital projects and business opportunities.
IRR estimates the annualized rate of return generated by an investment, helping investors compare multiple opportunities.
Businesses use IRR to determine whether a project is financially worthwhile by comparing it with the required rate of return.
NPV = Σ [ Cash Flow ÷ (1 + IRR)t ] = 0
The Internal Rate of Return is the discount rate that makes the present value of all future cash inflows equal to the initial investment.
| Feature | IRR | XIRR |
|---|---|---|
| Cash Flow Timing | Equal Intervals | Actual Dates |
| Best For | Projects & Business Investments | SIPs & Mutual Funds |
| Accuracy | High (Regular Cash Flows) | High (Irregular Cash Flows) |
| Date Input | Not Required | Required |
| Feature | IRR | NPV |
|---|---|---|
| Output | Percentage Return | Monetary Value |
| Decision Basis | Rate of Return | Value Creation |
| Common Use | Investment Comparison | Project Valuation |
| Result | Annualized % | Present Value |
Suppose you invest ₹100,000 today and receive the following yearly cash inflows:
The IRR Calculator determines the annual discount rate at which the Net Present Value (NPV) of these cash flows becomes zero, helping you evaluate whether the investment meets your required return.
The IRR Calculator helps you calculate the Internal Rate of Return (IRR) for investments and projects with regular cash flows. IRR represents the annualized rate of return that makes the Net Present Value (NPV) of all cash flows equal to zero, making it one of the most widely used financial performance metrics.
Investors, businesses and financial analysts use IRR to compare investment opportunities, evaluate capital projects and determine whether an investment meets the required rate of return.
This IRR Calculator provides estimated results based on the cash flows entered. Actual investment performance may differ due to taxes, inflation, financing costs, market conditions and other financial factors. This calculator is intended for educational and planning purposes only and should not be considered financial or investment advice.
IRR (Internal Rate of Return) is the discount rate at which the Net Present Value (NPV) of all investment cash flows becomes zero.
IRR helps compare investment opportunities by expressing expected profitability as an annual percentage return.
A good IRR depends on your required rate of return, project risk and investment objectives. Generally, a higher IRR indicates a more attractive investment.
IRR assumes cash flows occur at regular intervals, whereas XIRR uses actual transaction dates for irregular cash flows.
Yes. Financial professionals often evaluate both IRR and NPV together because they provide complementary insights into investment performance.
Yes. Businesses commonly use IRR to evaluate capital budgeting projects, equipment purchases, acquisitions and expansion opportunities.
Yes. A negative IRR generally indicates that an investment may fail to recover its initial cost under the projected cash flows.
Yes. This IRR Calculator is completely free and works on desktop, tablet and mobile devices.
Use our free finance calculators to calculate IRR, compare investment opportunities, analyze project profitability and make smarter long-term financial decisions.
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