When to use this calculator
Estimate one periodic internal rate of return for a conventional cash-flow sequence. Requires an initial outflow and later non-negative inflows, avoiding multiple-root cases. Searches periodic rates from −99.9% to 1,000%.
Explore the investment return calculators for other questions in this topic. For a related calculation, use the MIRR Calculator: Estimate modified internal rate of return with separate finance and reinvestment rates.
PUTTING IT INTO PRACTICE
IRR: a worked example
The values below are an illustrative example, not a recommendation. Replace them with measurements or assumptions that match your question.
| Input | Example value |
|---|---|
| Initial negative flow followed by non-negative inflows | -1000,1100 |
| Result | 10 % per period |
- Check the input labels and enter the example values above.
- Apply the relationship: Find the periodic rate at which NPV equals zero..
- The result is 10 % per period, rounded for display.
How to interpret your result
Requires an initial outflow and later non-negative inflows, avoiding multiple-root cases. Searches periodic rates from −99.9% to 1,000%.
Return measures must cover the same time period before comparison. CAGR annualises two endpoint values but does not model interim cash flows. Current income yield differs from total return or yield to maturity.
Frequently asked questions
Can CAGR handle money added during the period?
The simple endpoint CAGR model does not account for intermediate deposits and withdrawals. Those require cash-flow-aware methods.
When is the irr calculator useful?
Estimate one periodic internal rate of return for a conventional cash-flow sequence. Requires an initial outflow and later non-negative inflows, avoiding multiple-root cases. Searches periodic rates from −99.9% to 1,000%.
How do I use the irr calculator?
Enter initial negative flow followed by non-negative inflows. The result updates automatically. Use the units shown beside each input; the example values illustrate the method.
Which formula does this calculator use?
Find the periodic rate at which NPV equals zero..
What should I check before using the result?
Requires an initial outflow and later non-negative inflows, avoiding multiple-root cases. Searches periodic rates from −99.9% to 1,000%.
How are results rounded?
Scalar numbers display up to six decimal places, with scientific notation for very large or small values. Text, fraction, date and schedule outputs use the format described on the tool. Intermediate calculations use JavaScript floating-point arithmetic. Keep sensible precision for your measurements.
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