IRR Calculator
Find the discount rate that makes the net present value of your periodic cash flows zero.
IRR Calculator
Periodic Cash Flows
Period 0 is usually the initial outflow (negative).
Total Invested
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Total Returned
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Net Cash Flow
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Sign Changes
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IRR per Period
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Annualised IRR
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Cash Flows at the IRR
| Period | Cash flow (₹) | Discount factor | Present value (₹) |
|---|
Assumptions & method
- Formula: find r such that Σ cashflowₖ ÷ (1 + r)^k = 0, for periods k = 0, 1, 2 …. Period 0 is not discounted.
- Timing: every cash flow is treated as occurring at the end of its period, with equal gaps between periods. For uneven dates use the XIRR Calculator.
- Solver: NPV is scanned for sign changes between -99% and 10,000% per period and each crossing is refined by bisection.
- Multiple or missing solutions: the calculator counts sign changes in your cash flows and warns when more than one IRR may exist or none does.
- The annualised IRR compounds the per-period rate over the periods per year you enter: (1 + IRR)^periods − 1.
- IRR implicitly assumes interim cash flows are reinvested at the IRR itself. Fees, taxes and inflation are not modelled.
Results are estimates based on the figures you enter. They are not guarantees and not financial advice.
What is the internal rate of return (IRR)?
The internal rate of return is the discount rate that sets the net present value of a project to zero. If your required return is below the IRR, the project adds value; if it is above, it destroys value. The catch is that NPV is a polynomial in the discount rate, so it can cross zero more than once, or not at all, when cash flows switch between outflows and inflows several times. That is why this tool plots NPV against the rate and flags every sign change. When the chart crosses zero once, the IRR is reliable. When it crosses several times or never, rely on NPV at a chosen rate instead.