IRR Calculator

The Internal Rate of Return (IRR) is the annualized rate of return that makes the Net Present Value (NPV) of all cash flows equal to zero. It represents the true annual yield of an investment, accounting for the time value of money.

ROI (Return on Investment) is a simple ratio that ignores timing. IRR accounts for when cash flows occur, making it more accurate for multi-year investments. A project receiving $100K in year 1 has a higher IRR than one receiving $100K in year 5, even though both have the same ROI.

A hurdle rate is the minimum acceptable rate of return for an investment. If the IRR exceeds the hurdle rate, the investment is worth pursuing. Companies typically set their hurdle rate equal to their cost of capital plus a risk premium.

Using the IRR Calculator is simple: visit the tool page, enter your data or input into the provided fields, and get instant results. Follow the controls on the page. Some functions require sign-in or a paid plan; see Pricing for limits.

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