Calculate internal rate of return, NPV, MOIC, payback period, profitability index, hurdle-rate spread, and side-by-side project comparisons.
Finance Calculator
Calculate internal rate of return, NPV, MOIC, payback, and side-by-side project returns.
Internal Rate of Return
25.75%NPV at hurdle rate: $48,033 · MIRR: 18.98%| Period | Cash Flow | PV at Hurdle | Cumulative Cash |
|---|---|---|---|
| Period 0 | -$100,000 | -$100,000 | -$100,000 |
| Year 1 | $30,000 | $27,273 | -$70,000 |
| Year 2 | $35,000 | $28,926 | -$35,000 |
| Year 3 | $40,000 | $30,053 | $5,000 |
| Year 4 | $45,000 | $30,736 | $50,000 |
| Year 5 | $50,000 | $31,046 | $100,000 |
Formula
Internal rate of return is the discount rate that makes the present value of future cash flows equal to the initial investment. In other words, IRR is the rate where NPV equals zero.
Planning note
IRR is useful for comparing return rates, but it can be misleading when projects have different sizes, timing, or reinvestment assumptions. For mutually exclusive projects, NPV usually gives the clearer value-created signal.
Use cases
Use it to evaluate investments, compare project cash flows, estimate return rates, and test whether a project clears your hurdle rate or WACC.
Use the estimate for planning, then review assumptions, tax impact, financing costs, timing risk, and project uncertainty before making a real investment decision.
Use the estimate for planning, then review assumptions, tax impact, financing costs, timing risk, and project uncertainty before making a real investment decision.
Use the estimate for planning, then review assumptions, tax impact, financing costs, timing risk, and project uncertainty before making a real investment decision.
Use the estimate for planning, then review assumptions, tax impact, financing costs, timing risk, and project uncertainty before making a real investment decision.
Use the estimate for planning, then review assumptions, tax impact, financing costs, timing risk, and project uncertainty before making a real investment decision.
Use the estimate for planning, then review assumptions, tax impact, financing costs, timing risk, and project uncertainty before making a real investment decision.
Calculator details
Last updated: July 2026
Formula used
IRR is the discount rate that makes the net present value of cash flows equal zero.
Assumptions
Example calculation
If cash outflows and inflows produce an NPV of zero at 12%, the estimated IRR is 12%.
When to use this calculator
Use it to compare investment projects with multiple cash flows over time.
Disclaimer
This calculator is for estimation and educational use only. It does not replace professional financial, tax, legal, mortgage, investment, or accounting advice.
Questions
An IRR calculator estimates the internal rate of return from a series of cash flows. It helps show the annualized return rate that makes the net present value of the investment equal zero.
Enter the initial investment as a negative value in period 0, then enter expected returns as positive values in later periods. Uneven cash flows are supported.
IRR shows a percentage return rate, while NPV shows value created in today’s money at a chosen discount rate. For mutually exclusive projects, NPV often gives the clearer capital allocation signal.
If IRR is higher than your hurdle rate or WACC, the project may create value based on the assumptions entered. You should still review NPV, timing risk, reinvestment assumptions, taxes, and downside scenarios.
No. Results are estimates only. Real investment decisions can depend on financing costs, taxes, risk, timing, project execution, and market assumptions. Review major decisions with a qualified professional.
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