IRR (Internal Rate of Return) Calculator
IRR = the discount rate that makes NPV = 0. Solved numerically via Newton's method.
Result
General calculation reads
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How to use this calculator
- Enter initial investment.
- List annual cash flows.
- Read IRR; compare to your hurdle rate.
About this calculator
IRR is the discount rate that makes NPV exactly zero — the project's break-even rate. If IRR > your required return (hurdle rate), accept. Solved numerically because there's no closed-form for general cash flows. Beware: with non-conventional flows (sign changes), IRR can be multiple-valued or undefined; use NPV instead in those cases.
Frequently asked
IRR vs NPV — when do they conflict?+
Why might IRR be undefined?+
Reinvestment-rate assumption?+
How accurate is the numeric solver?+
What's a "good" IRR?+
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