IRR Calculator: Internal Rate of Return
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Editorial verification: Examples on this page are checked against FutureCalc core formulas before publish. Source: cross-checked with OpenStax TVM basics and Investor.gov investing basics.
Internal Rate of Return Calculator
What is IRR?
The internal rate of return is the annualized rate that makes NPV equal zero. Compare IRR to your hurdle rate, and always check dollar impact with the NPV calculator. Read the decision framework in NPV vs IRR vs payback.
Example
For −100,000 followed by five growing inflows, IRR is the break-even discount rate. If your cost of capital is below IRR, NPV at that cost of capital is typically positive for conventional projects.