Internal Rate of Return (IRR) Calculator

Calculate Your Investment's IRR Instantly

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Understanding Internal Rate of Return (IRR)

Internal Rate of Return (IRR) is a metric used to estimate the profitability of potential investments. It's the discount rate that makes the net present value (NPV) of all cash flows equal to zero.

When to Use IRR

  • Comparing different investment opportunities
  • Evaluating capital projects
  • Analyzing real estate investments
  • Assessing business ventures

IRR Formula

0 = NPV = Σ(Ct/(1+IRR)^t)

Where:
Ct = Net cash flow at time t
IRR = Internal rate of return
t = Time period