IRR Calculator
Calculate the internal rate of return (IRR) for any series of cash flows. Enter your initial investment and projected cash flows to see IRR, NPV, and MIRR. Free, no sign-up required.
The upfront cost of the investment (entered as a positive number; the calculator treats it as a cash outflow).
Enter the projected cash inflow (or outflow, use negative) for each year. Add or remove rows as needed.
Your required rate of return / hurdle rate. Used to calculate NPV alongside IRR.
Rate at which positive cash flows are reinvested. Used for the Modified IRR calculation.
💰 Internal Rate of Return (IRR)
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NPV at 10%
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MIRR
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Modified IRR (reinvested at 8%)
Total Invested
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Total Returned
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Net Profit
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⚠ Multiple Sign Changes Detected
Your cash flows change sign more than once, which can produce multiple IRR values. The calculator shows the first valid root. Consider using MIRR or NPV for a more reliable comparison.
📊 Year-by-Year Cash Flow Breakdown
| Year | Cash Flow | PV at IRR | Cumulative NPV |
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PV at IRR is each cash flow discounted at the calculated IRR. Cumulative NPV should converge to ~$0 by the final year — that is the definition of IRR.
💡 What this means
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- Enter Initial Investment — the upfront cost of the project or investment (e.g., $10,000). This is your Year 0 cash outflow.
- Enter Cash Flows — the projected net cash inflow (or outflow) for each year. Use positive numbers for inflows and negative for additional investments or costs in later years.
- Add or Remove Years — click "+ Add another year" to extend the cash flow timeline, or the — button to remove a year.
- Enter Discount Rate — your required rate of return or hurdle rate (e.g., 10%). This is used to calculate NPV alongside IRR for comparison.
- Enter Reinvestment Rate — the rate at which intermediate positive cash flows are reinvested, used for the Modified IRR (MIRR) calculation.
- Click Calculate — see the IRR, NPV at your discount rate, MIRR, total invested vs. returned, net profit, and a year-by-year breakdown.
📌 5 tips for using IRR
- ✓ Compare IRR to your hurdle rate. IRR is only meaningful relative to a benchmark. If your IRR is 12% but your cost of capital is 10%, the investment creates 2 percentage points of excess return. If IRR is below your hurdle rate, the investment destroys value.
- ✓ Watch for multiple sign changes. If your cash flows go negative → positive → negative (e.g., an initial investment, profitable years, then a decommissioning cost), there may be multiple valid IRRs. This calculator will warn you — in such cases, rely on NPV instead.
- ✓ Use MIRR for realism. IRR assumes you can reinvest intermediate cash flows at the IRR rate itself, which is often unrealistic. MIRR uses a separate, more conservative reinvestment rate, giving a more accurate picture for high-IRR projects.
- ✓ Don't compare IRR across different scales. A 50% IRR on a $1,000 investment ($500 profit) is less valuable than a 15% IRR on a $100,000 investment ($15,000 profit). For mutually exclusive projects of different sizes, use NPV to decide.
- ✓ Pair IRR with payback period. IRR tells you the rate of return but not how long your capital is at risk. A project with a 20% IRR over 10 years is riskier than one with a 20% IRR over 3 years. Use the payback period calculator alongside IRR to assess time risk.
Disclaimer: This calculator provides estimates for educational purposes only. IRR calculations assume constant cash flows and do not account for risk variability, taxes, or changing market conditions. IRR is a useful screening metric but should not be the sole basis for investment decisions. This tool is not financial advice. Consult a financial advisor or investment professional for guidance tailored to your situation.
Related Tools
IRR is the rate that makes NPV zero — the centerpiece of investment analysis. These six calculators cover the rest of your toolkit, from present value and ROI to compound interest, CAGR, dividend reinvestment, and investment fees.
- Present Value Calculator — discount future cash flows to today. IRR is the discount rate that makes PV of inflows equal the initial investment.
- ROI Calculator — measure total return on investment as a percentage. IRR is the annualized version of ROI, accounting for the time value of money.
- Compound Interest Calculator — see how any investment grows with compounding. IRR is the compounding rate that equates inflows to outflows.
- CAGR Calculator — calculate the compound annual growth rate of an investment. CAGR is a simplified IRR for single cash-flow-in, single cash-flow-out scenarios.
- Dividend Reinvestment Calculator — see how reinvesting dividends grows your portfolio. Use IRR to evaluate the total return of a dividend reinvestment strategy.
- Investment Fee Calculator — see how management fees erode returns. Fees directly reduce your IRR — a 1% fee can cut a 7% IRR to 6%.