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IRR Calculator

Calculate the internal rate of return from a fixed recurring cash flow or from irregular yearly cash flows, with total return, gross return, and a capital-vs-return breakdown.

A level deposit or withdrawal each period, plus the ending balance at the end of the holding period.

ExampleSample values — edit any field to see your result.

$
years
months
$
$

Set to 0 if there is no recurring cash flow.

At the

of each period. Beginning-of-period cash flows include one extra payment at the start.

Results update as you type.

IRR

29.768%per year

Estimated result

Cumulative Withdrawals
$3,000.00
Total Return
$8,000.00
Gross Return
80.000%

Investment vs return

Initial Investment 56%, Total Return 44%
  • Initial Investment56%
  • Total Return44%
IRR29.768% per year

Find the annual internal rate of return of an investment. Use Fixed for a level deposit or withdrawal plus an ending balance, or Irregular for a different cash flow each year.

Formula

IRR is the rate r that sets net present value to zero. Times are in years:

NPV = Σ CF_t / (1 + r)^t  =  0

CF₀ is the initial investment (an outflow). Later cash flows are deposits (outflows), withdrawals (inflows), or the ending balance at the holding date.

On the Fixed tab, complete periods are floor((years + months/12) × payments per year). A leftover fraction of a year still discounts the ending balance, but does not add another deposit. Beginning-of-period cash flows include one extra payment at t = 0.

Gross return is total return divided by capital (the initial investment plus any extra deposits or further investments).

Weekly and biweekly holdings assume a 52-week year (52 weeks or 26 two-week periods).

Default results

TabInputsIRR
Fixed$10,000 → $15,000, 2 years 6 months, $100/month withdrawn at period end29.768%
Irregular$50,000, then −$10,000 / $30,000 / $50,00012.446%

Examples

Default fixed cash flow

Invest $10,000, hold 2 years 6 months, withdraw $100 at the end of each month, and finish with $15,000. IRR is 29.768% per year. Withdrawals total $3,000, total return is $8,000, and gross return is 80.000%.

Machine purchase (irregular years)

A $40,000 machine returns $10,000, $20,000, and $30,000 at the ends of years 1–3. IRR is 19.438%. If the hurdle rate is 12%, the project clears it; at 20% it does not.

Same 50% ROI, different IRR

Two $100,000 projects each return $150,000 over five years (50% ROI). Front-loaded cash flows (5 / 20 / 25 / 40 / 60 thousand) have IRR 11.290%. Back-loaded cash flows (0 / 10 / 30 / 30 / 80 thousand) have IRR 10.259%.

Frequently asked questions

What is IRR?
Internal rate of return is the annual discount rate that makes a project's net present value exactly zero. In other words, it is the break-even compound return once you factor in the timing of every cash flow, not just the total profit.
How is IRR different from ROI?
ROI is total profit divided by capital, and it ignores when the money arrives. Two projects can share the same 50% ROI and still have different IRRs if one pays earlier. Use IRR when cash flows are spread over several years and you care about the time value of money.
When should I use Fixed vs Irregular?
Use Fixed when the extra cash flow is the same every period — a monthly withdrawal, a quarterly deposit, or no extra cash flow at all besides the ending balance. Use Irregular when each year is different, including extra investments (enter those years as negative amounts).
Why does beginning-of-period raise IRR for a withdrawal?
Beginning-of-period adds one extra payment at the start, so you take (or put in) money sooner. Taking money out earlier raises IRR; depositing earlier lowers it, because more of your capital is tied up from day one.
Can IRR be missing or have more than one answer?
IRR needs at least one outflow and one inflow. If every cash flow has the same sign, there is no rate that zeroes NPV. Projects that switch from negative to positive and back again can have more than one mathematical IRR; this calculator reports the conventional root (Newton from 10%).

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