IRR Calculator
Estimate internal rate of return from an initial investment and annual cash flows.
This page is an editable estimator with realistic defaults so you can model your own situation in minutes.
IRR is the discount rate that makes net present value approximately zero.
Treat the result as a planning estimate and verify important numbers with the relevant official source before acting.
| Year 1 | $12,000 | |
|---|---|---|
| Year 2 | $14,000 | |
| Year 3 | $16,000 | |
| Year 4 | $18,000 | |
| Year 5 | $20,000 |
Assumptions
- IRR can be misleading with unusual cash-flow timing or multiple sign changes.
- Use this as a directional estimate only.
How this calculator works
Formula used
IRR is the discount rate that makes net present value approximately zero.
Example calculation
Plug in your own numbers and the result updates instantly. IRR is the discount rate that makes net present value approximately zero.
IRR Calculator FAQ
Is this irr calculator financial or tax advice?
No. It is an educational estimate only and does not replace a CPA, attorney, tax professional, lender, bookkeeper, or financial advisor.
Why might my actual result differ?
Real results can change because of taxes, state rules, fees, financing terms, accounting methods, refunds, seasonality, entity structure, payroll setup, and business-specific facts.
Should I verify before making a decision?
Yes. Confirm business, loan, tax, pricing, entity, and investment decisions with qualified professionals and actual contracts, invoices, books, and tax forms.