BESTUTILS

IRR Calculator

Calculate the Internal Rate of Return for your investment cash flows

Cash Flow Inputs

Period 1:
Period 2:
Period 3:

Results

What is IRR (Internal Rate of Return)?

The Internal Rate of Return (IRR) is a financial metric used to evaluate the profitability of potential investments. It represents the annual rate of growth that an investment is expected to generate. IRR is the discount rate that makes the net present value (NPV) of all cash flows equal to zero.

How to Use This IRR Calculator

1

Enter Initial Investment: Input your initial investment as a negative value (money going out).

2

Add Cash Flows: Enter the expected cash inflows for each period (positive values for money coming in).

3

Add/Remove Periods: Use the "Add Cash Flow Period" button to add more periods or "Remove" to delete periods.

4

Calculate: Click "Calculate IRR" to get your Internal Rate of Return percentage.

💡 Tips for Better Results

  • • Higher IRR generally indicates a more attractive investment
  • • Compare IRR with your required rate of return or cost of capital
  • • Consider other factors like risk and investment duration alongside IRR
  • • IRR assumes reinvestment at the same rate, which may not be realistic

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