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Calculate the internal rate of return for an investment based on its cash flows.
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.
IRR is the discount rate that makes NPV = 0. Found through iterative calculation of -Initial + Σ(CF/(1+IRR)^t) = 0.
Result: IRR: 18.8%
An IRR higher than your cost of capital is good. Generally, 15%+ is considered attractive.
IRR considers time value of money. ROI is a simpler percentage return without timing.
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.
Yes, a negative IRR means the investment loses money overall because the total discounted cash flows never recover the initial investment cost.