Internal Rate Of Return

Internal Rate Of Return - Calculate and analyze your financial metrics with this comprehensive calculator.

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Updated January 2025
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Internal Rate of Return (IRR) Calculator

Calculate IRR, NPV curves, and make investment decisions with advanced analysis

Project Details

Minimum acceptable rate of return

Cash Flows

Project Templates

IRR Formula

IRR is the rate where NPV = 0

0 = Σ(CF_t / (1+IRR)^t)

IRR Quick Reference

What is IRR?

The discount rate that makes NPV equal to zero. It represents the project's effective return rate.

Decision Rule

If IRR > Required Rate: Accept | If IRR < Required Rate: Reject

Profitability Index

= Total Inflows ÷ Total Outflows | >1.0 = Acceptable

Payback Period

Time required to recover initial investment from cash flows.

Advantages

Single number for comparison. Accounts for time value of money.

Limitations

Can have multiple IRRs. Assumes reinvestment at IRR rate.