IRR Calculator
Estimate the Internal Rate of Return (IRR) for a series of cash flows. Provide cash flows and a starting guess; the tool iterates to find an approximate IRR.
What IRR tells you
Benefits
- Compare investments with different cash flow timing.
- Express performance as a single annualized rate.
- Helpful for project and portfolio screening.
Common use cases
- Capital budgeting decisions.
- Evaluating returns on business projects.
- Analyzing investments with periodic payouts.
Note: IRR can fail or produce multiple solutions depending on cash flow sign changes. This tool provides an estimate.
Field guide
Cash flows: Comma-separated (e.g. -1000, 300, 300, 400).
Guess %: Starting point for iteration.
IRR: Rate $r$ where NPV is 0: $\sum \frac{CF_t}{(1+r)^t}=0$.