What is the IRR Calculator?
The irr calculator is a free online tool that helps you work out irr quickly and accurately. It uses the standard formula IRR is the discount rate that makes NPV = 0 (found numerically) and shows the result instantly as you type, along with a full breakdown so you can see exactly how the answer was reached.
How to use this calculator
- Enter the initial outflow.
- Enter yearly inflows.
- See the IRR.
Formula used
IRR is the discount rate that makes NPV = 0 (found numerically)Explanation of each input
- Initial investment (outflow) โ the initial investment (outflow) used in the calculation.
- Yearly cash inflows (comma separated) โ the yearly cash inflows (comma separated) used in the calculation.
Understanding your result
- Internal rate of return โ the calculated internal rate of return in %.
Step-by-step calculation
For the example values -100000 then 30k..60k:
- Apply the formula:
IRR is the discount rate that makes NPV = 0 (found numerically) - Substitute the values: solve NPV=0
- Result: IRR about 24%
Worked example
| Inputs | -100000 then 30k..60k |
|---|---|
| Working | solve NPV=0 |
| Result | IRR about 24% |
Benefits and practical uses
This calculator saves you time and reduces errors when you need irr. It is useful for students, professionals and anyone who wants a fast, reliable answer without manual calculation. Results update instantly, work in your browser and can be copied or shared in one click.
Assumptions and limitations
- End-of-year flows; single sign change for a unique IRR.
Frequently asked questions
How is IRR used?
Compare it with your required return; if IRR is higher, the project is attractive.
Disclaimer: This calculator provides estimates for general information only and is not financial advice. Returns are illustrative and not guaranteed; consult a qualified financial adviser before making decisions.