Calculate IRR from any series of cash flows — instantly.
Cash Flows
Enter one cash flow per period. Use negative values for investments/outflows and positive values for returns/inflows. Period 0 is typically the initial investment.
IRR Result
NPV at Common Hurdle Rates
10% hurdle rate
$1,307.29
IRR exceeds hurdle
15% hurdle rate
$255.61
IRR exceeds hurdle
20% hurdle rate
-$648.15
Hurdle exceeds IRR
Positive NPV means the investment earns above the hurdle rate. IRR = 16.34% — accept projects where IRR exceeds your required rate of return.
Cash Flow Schedule
| Period | Cash Flow | PV at IRR | Cumulative CF |
|---|---|---|---|
| 0 | -$10,000.00 | -$10,000.00 | -$10,000.00 |
| 1 | $3,000.00 | $2,578.64 | -$7,000.00 |
| 2 | $4,200.00 | $3,103.04 | -$2,800.00 |
| 3 | $6,800.00 | $4,318.33 | $4,000.00payback |
| Total | $4,000.00 | ≈ 0 | $4,000.00 |
NPV Sensitivity
See how NPV changes across discount rates for your cash flows. At IRR (16.34%), NPV = 0.
Note: IRR is solved numerically using Newton-Raphson iteration. Some unconventional cash flow patterns (multiple sign changes) may produce multiple valid IRRs — this calculator returns the most economically meaningful solution. Always complement IRR analysis with NPV when evaluating investments. For informational purposes only.
The IRR calculator finds the internal rate of return for any series of cash flows using Newton-Raphson numerical solving. Enter your initial investment and projected inflows, and the tool instantly returns the IRR, net present value at common hurdle rates, a payback period, and a full NPV sensitivity table — helping you decide whether a project or investment clears your required rate of return.
IRR (Internal Rate of Return) is the discount rate that makes the net present value (NPV) of a series of cash flows equal to zero. It is solved numerically — there is no closed-form formula — typically using Newton-Raphson iteration, which is what this calculator uses.
Compare the IRR to your hurdle rate (minimum required return). If IRR > hurdle rate, the investment creates value and should be accepted. If IRR < hurdle rate, the project destroys value relative to your cost of capital. For example, an IRR of 18% beats a 12% hurdle rate.
A valid IRR requires at least one sign change in the cash flow series — typically an initial outflow followed by inflows. If all cash flows are positive or all negative, no IRR exists. Cash flows with multiple sign changes may have multiple IRRs; in those cases, use NPV analysis instead.
NPV (Net Present Value) measures the absolute dollar value added by an investment at a given discount rate, while IRR is the rate itself. NPV is generally preferred for comparing projects of different scales. IRR is useful as a quick hurdle-rate comparison, but can be misleading when cash flow timing or project size differs significantly.