Long-term planning

IRR Calculator

Estimate the internal rate of return (IRR) from an initial investment and projected annual cash flows. Use this Savings and investing tool to enter your numbers, review the result, and understand the key assumptions before making the next decision.

What you get
A focused calculator, clear explanation, common questions, and useful next tools.
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Result
Explanation
Common questions
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How this calculator works
The result depends on the numbers you enter and the assumptions shown below.

IRR is the discount rate that makes the net present value (NPV) of all cash flows equal to zero. It represents the effective annual yield of an investment. Calculated using numerical iteration.

Review the inputs carefully and treat the output as an estimate. For decisions involving money, taxes, health, law, or security, compare the result with trusted professional guidance when needed.

Frequently asked questions

When is IRR useful?

IRR is useful for comparing investment projects on a rate-of-return basis. A project with IRR above your hurdle rate (required return) is generally worth pursuing.

What are IRR limitations?

IRR assumes cash flows are reinvested at the IRR rate, which may be unrealistic. For projects with unconventional cash flows, multiple IRRs can exist.