Free Online IRR Calculator
Calculate the Internal Rate of Return for investment projects. Compare project profitability by finding the discount rate that makes NPV equal to zero.
Year 1
Year 2
Year 3
Year 4
Year 5
Internal Rate of Return
19.71%
Total Return
$175,000
Net Profit
$75,000
🔥 Excellent return rate!
How to Use IRR Calculator
- 1
Enter the initial investment amount
- 2
Add future cash flows for each year or period
- 3
See the IRR percentage and compare with your required rate of return
Frequently Asked Questions
What is IRR?▾
IRR (Internal Rate of Return) is the discount rate at which the net present value of all cash flows equals zero. It represents the annualized expected return of an investment, making it easy to compare different projects.
What is a good IRR?▾
A good IRR depends on context. Generally, an IRR above your cost of capital (WACC) indicates a profitable project. Most businesses target IRR of 15-25% for new investments. Higher-risk ventures typically require higher IRR thresholds.
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