Internal Rate of Return (IRR) Calculator
Calculate the IRR of your investment by entering the initial investment and expected cash flows.
Internal Rate of Return
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Understanding IRR
The Internal Rate of Return (IRR) is a metric used to estimate the profitability of potential investments. It represents the annualized return on an investment, taking into account the time value of money.
Key Points About IRR
1. IRR is the discount rate that makes the net present value (NPV) of all cash flows equal to zero.
2. Generally, the higher the IRR, the more desirable an investment is to undertake.
3. IRR can be compared against a company's required rate of return to determine if an investment is worthwhile.