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📊 Internal Rate of Return (IRR) Calculator

Enter your initial investment and the cash flows it generates over the next few years to estimate the internal rate of return (IRR).

Initial Investment (outflow)

Year 1 Cash Flow

Year 2 Cash Flow

Year 3 Cash Flow

Year 4 Cash Flow

Year 5 Cash Flow

What is IRR?

The internal rate of return (IRR) is the discount rate at which the net present value (NPV) of a series of cash flows equals zero. It’s a standard way to estimate the annualized rate of return an investment or project is expected to generate.

How this calculator works

Given your initial investment (as a cash outflow) and up to five subsequent yearly cash inflows, this calculator solves for the rate r that satisfies NPV = -Investment + Σ [CF_t ÷ (1 + r)^t] = 0. Because this equation generally can’t be solved algebraically, the calculator uses an iterative numerical method (bisection) to home in on the rate.

A higher IRR generally indicates a more attractive investment, all else equal.
IRR assumes interim cash flows are reinvested at the IRR itself, which may not reflect reality for very high or low rates.
If cash flows never cross from negative to positive NPV within the tested range, no valid IRR is shown.

This calculator is for general educational and planning purposes only and is not financial advice.

Last reviewed August 2026