IRR Calculator
IRR is the discount rate that makes the net present value of all cash flows equal zero. It is widely used to rank capital projects, private equity deals...
Enter values and click Calculate.
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Introduction
IRR is the discount rate that makes the net present value of all cash flows equal zero. It is widely used to rank capital projects, private equity deals, and rental property investments.
Internal Rate of Return
IRR is the discount rate that makes the net present value of all cash flows equal zero. It is widely used to rank capital projects, private equity deals, and rental property investments.
Interpreting IRR
Higher IRR generally indicates a more attractive project if projects have similar risk, scale, and duration. A small project with 40% IRR may add less dollar wealth than a large project at 15%.
Multiple IRRs
Cash flows that switch from negative to positive more than once can produce multiple mathematically valid IRRs. In those cases, pair IRR with NPV at your hurdle rate or use modified IRR methods.
Hurdle Rate Comparison
Compare calculated IRR to your required return (cost of capital). If IRR exceeds the hurdle, the project theoretically creates value. Always sanity-check assumptions on terminal values and reinvestment.
Related Tools
Payback Period Calculator, ROI Calculator, Rental Property Calculator.
How It Works
- Enter your amounts, rates, and term in the form. Use the same units shown in the labels (dollars, years, percent).
- Click Calculate to run the IRR Calculator engine. Invalid or empty required fields show a clear error message.
- Review the summary cards for the key outputs. Expand schedules or tables when available for period-by-period detail.
- Copy, print, or share your scenario link. Reset the form anytime to start a fresh comparison.