IRR calculator
Find the rate that makes periodic cash-flow net present value zero.
Formula
0 = C0 + C1/(1+r) + … + Cn/(1+r)^n
How to use
- Enter the initial investment as a negative amount.
- Separate later nonnegative receipts with semicolons.
- Read IRR per period; use equal time intervals.
Examples
- −100; 110 gives 10% per period.
- −100; 0; 121 gives 10% per period.
Frequently asked questions
Is the answer always annual?
Only if your cash flows are annual; monthly flows produce monthly IRR.
Why reject later negative flows?
Multiple sign changes may create multiple IRRs; this tool handles one initial outflow only.
Can IRR be negative?
Yes. For −100 followed by 90, the rate is −10%.
Sources
Updated: