Enter the initial investment and each year's cash flow. The calculator iterates to find the discount rate where NPV equals zero, giving the IRR.
The Internal Rate of Return is the discount rate at which a project's Net Present Value equals zero. It represents the effective annual return of its cash flows.
There is no closed formula, so IRR is found numerically by testing discount rates until NPV reaches zero. This tool iterates to converge on that rate.
Compare IRR with your required rate or cost of capital. If IRR exceeds it, the project is generally worthwhile; if lower, it may not justify the investment.
← View all Finance & Health CalculatorsBrowse all 1,100+ tools →