Calculate the internal rate of return (IRR or XIRR with dates), NPV and multiple on any cash flows.
Please do not make financial decisions based on these results.
What is the IRR Calculator?
Internal rate of return (IRR) is the discount rate at which a series of cash flows has a net present value of zero. It lets you compare investments with uneven timing.
Comparing returns
To judge past performance use the average return calculator and the ROI calculator. For projects with several cash flows, the IRR calculator gives a single comparable rate, and the payback period calculator shows how long it takes to recover the cost.
How to use the IRR Calculator
- Fill in the fields. You will need Discount rate for NPV (% per year). Use a rate of return you consider realistic; small changes compound into large differences. Fields marked optional can stay at zero.
- Choose your options. Cash flow period (for periodic flows) change how the result is worked out, and the form updates to match your choice.
- Read the result. The highlighted box gives the IRR (annualized), and the cards below show IRR per period, NPV at 8%, Total invested. Tables and charts break it down further.
- Test other scenarios. Results update as you type. Change one value at a time to see what drives the answer, and press Reset to go back to the defaults.
Formula and how it works
Example with real numbers
Here is the IRR Calculator using the default values shown in the calculator above:
Inputs
| Cash flow period (for periodic flows) | Yearly |
|---|---|
| Discount rate for NPV (% per year) | 8 |
Results
| IRR (annualized) | 19.71% |
|---|---|
| IRR per period | 19.71% |
| NPV at 8% | $3,667.99 |
| Total invested | $10,000.00 |
| Total returned | $17,500.00 |
| Net profit | $7,500.00 |
| Multiple (MOIC) | 1.75× |
With these inputs the calculator returns IRR (annualized): 19.71%. Change any value in the calculator to see how the result moves.
What the results tell you
The results panel of the IRR Calculator reports IRR (annualized), irr per period, npv at 8%, total invested, total returned, net profit and multiple (moic). Compare these figures while changing one input at a time, and use the related calculators below to look at the same situation from another angle.
Tips for better results
Method and limits. This calculator applies the formula in the section above to your inputs, in your browser; nothing you enter is stored on our servers. Investment returns are not guaranteed. The result shows what the numbers you enter would produce, not what the market will do. It is for information, not financial, tax or legal advice.
Frequently asked questions
What is XIRR?
IRR for cash flows that happen on irregular dates.
Is a higher IRR always better?
Not always. IRR ignores the size of the investment and assumes reinvestment at the same rate. Check NPV and the profit amount too.
What rate of return should I assume?
There is no guaranteed rate. Test a range of conservative and optimistic rates, and remember that fees and inflation reduce your real return.
Are investment returns guaranteed?
No. Real returns vary. Use these tools to compare scenarios, not to predict results.
Are the results guaranteed?
No. Results depend entirely on the numbers you enter and the formulas shown on this page. Please do not make financial decisions based on them alone; confirm important figures with a licensed professional.
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