Internal Rate of Return (IRR) Calculator

The Internal Rate of Return (IRR) Calculator helps you figure out how return you can expect from an investment. You put in your investment and then enter all the cash you get back over time. This tool works for both irregular cash flows. Pick your currency type, in the amounts and see your estimated IRR away.

Investment Details

$
Years
Months
$

Regular Cash Flow

$
Timing:

Investment Details

$

Future Cash Flows

Enter each future cash flow as a positive amount. The initial investment is automatically treated as a negative cash flow.

Your IRR Results

Annualized Internal Rate of Return —
Periodic IRR—
Initial Investment—
Total Cash Received—
Net Cash Flow—
Number of Cash Flows—
Calculation Method—
IRR is the estimated rate at which the net present value of all entered cash flows becomes zero. Actual investment returns may differ.

What Is IRR and XIRR?

IRR, which stands for Internal Rate of Return is the rate at which the net present value of an investments cash flows becomes zero. IRR is commonly used to check how profitable an investment may be.

XIRR is used when cash flows happen on dates rather than, at regular intervals. XIRR considers the actual dates of investments and returns to calculate an annualized rate.

How to Use This IRR Calculator

  1. Select your preferred currency from the dropdown.
  2. Choose Fixed Cash Flow (IRR) for regular intervals or Irregular Cash Flow (XIRR) for different dates.
  3. Enter your initial investment as a negative amount.
  4. Add your expected returns as positive amounts.
  5. For fixed cash flows, select the payment frequency. For irregular cash flows, enter the actual dates.
  6. Check the result to see your estimated annual return.

Frequently Asked Questions

1. What is an IRR Calculator?

An IRR Calculator helps you find the estimated annual rate of return on an investment based on its cash inflows and outflows.

2. What is the difference between IRR and XIRR?

IRR is used when cash flows happen at regular intervals, such as monthly or yearly. XIRR is useful when investments and returns happen on different dates.

3. Can I use this calculator for monthly investments?

Yes. Select Fixed Cash Flow (IRR), choose Monthly frequency, and enter your investment and return amounts for each period.

4. Can I calculate IRR in different currencies?

Yes. The calculator supports multiple currencies, including USD, EUR, GBP, INR, CAD and AUD. Select your preferred currency before entering the amounts. It does not perform currency conversion.

5. Is a higher IRR always better?

Not necessarily. A higher IRR can indicate a better return, but you should also consider investment risk, the time involved, and the total amount you may earn.

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