IRR Calculator
Internal Rate of Return — the discount rate that makes NPV equal to zero.
IRR is the discount rate at which the net present value (NPV) of all cash flows equals zero. A higher IRR indicates a more attractive investment.
Annual Cash Inflows (Year 1–10)
IRR25.8564%
NPV at 0% Rate+$50,000.00
Payback Period3.85 yr
| Year | Cash Flow | Cumulative |
|---|---|---|
| 0 | $-50,000.00 | $-50,000.00 |
| 1 | +$15,000.00 | $-35,000.00 |
| 2 | +$18,000.00 | $-17,000.00 |
| 3 | +$20,000.00 | +$3,000.00 |
| 4 | +$22,000.00 | +$25,000.00 |
| 5 | +$25,000.00 | +$50,000.00 |
IRR uses Newton–Raphson iteration. Multiple sign changes may yield multiple IRRs.