Calculator

IRR Calculator

Find the rate of return an investment actually produces — the same inputs as the NPV calculator, but answering a different question.

← Read the Internal Rate of Return (IRR) concept page

Initial investment (upfront cost)

Cash flow received at the end of each year

Number of years

yrs

Your required rate of return (optional, for comparison)

Internal rate of return

7.71%

Your required rate

8.0%

NPV at 8%

-$63.62

How the math works

At 7.71%, this investment's NPV is exactly zero — that's the IRR. Compare it to your required rate of 8.0%: since the IRR is lower, this investment is expected to underperform your required rate — its NPV at 8% is negative (-$63.62).

This is the same underlying cash flow stream the Net Present Value Calculator uses — NPV assumes a rate and reports a dollar amount; IRR assumes a dollar amount of zero and reports a rate.