IRR Calculator

Calculate the internal rate of return for an investment based on its cash flows.

Initial Investment ($) (negative)

Year 1 Cash Flow ($)

Year 2 Cash Flow ($)

Year 3 Cash Flow ($)

Year 4 Cash Flow ($)

Year 5 Cash Flow ($)

Use Cases

Evaluate project profitability
Compare investment returns
Capital budgeting decisions

Frequently Asked Questions

What is a good IRR?

An IRR higher than your cost of capital is good. Generally, 15%+ is considered attractive.

What is the difference between IRR and ROI?

IRR considers time value of money. ROI is a simpler percentage return without timing.

What if my cash flows are irregular or skip a year in the calculation?

For years with no cash flow, enter zero for that year amount. The IRR calculation will properly account for the gap in the cash flow sequence.

Can IRR be negative and what does a negative IRR signify?

Yes, a negative IRR means the investment loses money overall because the total discounted cash flows never recover the initial investment cost.

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Disclaimer:

This calculator provides estimates only. Actual loan payments, APR, interest, fees, taxes and terms may vary by lender, country, credit profile and market conditions. Verify with a qualified financial professional or lender.