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IRR Calculator

Calculate Internal Rate of Return for any investment or project. Evaluate profitability with ease.

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Ending balance:
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Years:
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How to use ?

1

Add Some

There are 3 options :

→ 1) general

→ 2) Cash Flow

→ 3) Multiple

2

Some Calculate

choose the anyone and Calculate

3

Some Result

1) General : 

Internal rate of return (IRR)

Shortfall in return

2) Cash Flow :

Internal rate of return (IRR)

Total returned

3) Multiple :

Internal rate of return (IRR)

Why Use?

Why Use This IRR Calculator?

What is IRR?
IRR stands for Internal Rate of Return. It is the interest rate at which the Net Present Value (NPV) of all cash flows from an investment equals zero. In simple terms, IRR helps you measure and compare the profitability of different investments or projects, giving you a single percentage figure that represents the expected rate of return.

How is IRR Calculated?
IRR is derived from the NPV formula: 0 = Σ [Ct / (1 + r)^t]
Where Ct is the cash flow at time t, r is the IRR, and t is the time period in years.

Simple Example:
Priya invested ₹25,000 in a small venture. Her total outgoings were ₹25,000 and her income was ₹40,000, giving an NPV of ₹15,000. By testing different rates until NPV = 0, the IRR of her venture works out to approximately 60%.

IRR with Irregular Cash Flows
IRR is especially powerful when cash flows are uneven or irregular. Consider an investment of ₹10,00,000 that returns ₹30,000 in year one, ₹50,000 in year two, nothing in year three, and ₹50,000 in year four. The timing of returns matters as much as the amounts — money received sooner is worth more than the same amount received later. IRR accounts for this time value of money automatically.

What is the Difference Between IRR and ROI?
ROI (Return on Investment) uses fixed values and does not consider when money is received or the time value of money. IRR accounts for the timing of cash flows, making it far more useful for long-term investment analysis. An investment that doubles your money in one year is far better than one that doubles it in 40 years — ROI treats both the same, but IRR does not.