Free Online IRR Calculator
Enter what you pay upfront and the cash you expect each year. You get IRR—the annual return that makes the net present value of those flows equal to zero.
IRR is the return rate that makes the net present value of your cash flows zero.
Enter the amount you invest initially (treated as cash outflow in calculation)
What IRR means
Internal rate of return (IRR) is the discount rate where NPV of your cash flows is zero. If IRR is above your hurdle rate, the project typically clears your return requirement (check NPV in dollars too).
IRR works best when you compare projects with similar scale and timing. Very different cash-flow patterns can produce multiple IRRs; use NPV for the final dollar decision.
How to use this calculator
- Enter the initial investment (money out at time zero).
- Choose fixed yearly inflows or enter amounts year by year.
- Set how many years the project runs.
- Calculate IRR and compare it to your required return.
- If IRR is close to your hurdle, run the NPV calculator with the same flows.
Worked examples
Sample numbers you can try in the calculator above. Your lender's quote may differ slightly.
Three-year ramp-up
A moderate-growth pattern common in small capital projects.
$10,000 out · $3k, $4k, $5k in years 1–3
IRR: IRR about 15.2%
Steady rental income
Income-only returns may look low unless you model a sale in the final year.
$200,000 out · $25,000/yr × 5 years
IRR: IRR often in the mid-single digits
Business expansion
Increasing cash flows raise IRR versus flat annual payments.
$50,000 out · rising yearly inflows over 5 years
IRR: IRR often mid-teens if growth is strong
Short equipment payback
Cost-saving projects should beat your financing or opportunity cost.
$75,000 out · $30,000 savings × 3 years
IRR: Compare IRR to your cost of capital
Frequently asked questions about the iRR Calculator
What is IRR?
The annualized return rate that sets NPV of your cash flows to zero, given the amounts and timing you enter.
IRR vs NPV?
IRR is a percentage hurdle check; NPV shows dollars added. Prefer NPV when projects differ in size.
What is a good IRR?
Above your cost of capital or hurdle rate—often 8–15% depending on risk and industry.
Can IRR be negative?
Yes, if cash inflows never recover the initial investment at any reasonable rate.