Calculate the annualized discount rate that makes the Net Present Value (NPV) of cash inflows and outflows equal to zero for both fixed recurring streams and uneven irregular capital projects.
• Module 1 (Fixed Cash Flow): Computes IRR when you have an initial investment, a fixed periodic withdrawal or deposit stream, and a final ending balance.
• Module 2 (Irregular Cash Flow): Solves IRR for uneven annual capital calls and distribution series, alongside an interactive NPV discount sensitivity curve.
This calculator computes the IRR based on a fixed recurring cash flow or no cash flow.
30.05%
annualized return over 2.50 yearsThis calculator computes the IRR based on the initial investment and subsequent annual cash flows. If you want to calculate the IRR for cash flows that are not annual, please use our Average Return Calculator.
12.45%
annualized return across 3 periodsInternal Rate of Return (IRR) is a core metric in corporate finance, private equity, and capital budgeting. It represents the annualized compound rate of return that equates the present value of future cash inflows with the initial capital outlay.
IRR is the exact discount rate at which the Net Present Value of all cash flows equals zero.
If a project's IRR exceeds the company's cost of capital (or minimum hurdle rate), the investment generates economic value and is generally accepted.
Standard IRR assumes all interim cash distributions can be reinvested at the same high IRR rate, which is why Modified IRR (MIRR) is sometimes used for conservative modeling.
Project periodic investments and long-term portfolio growth.
Calculate simple and annualized Return on Investment.
Compare arithmetic, geometric CAGR, and money-weighted returns.
Calculate simple and compound interest across various frequencies.