IRR Calculator

Your details

The upfront amount invested at time zero (entered as a positive number - it will be treated as a cash outflow).
Net cash received (or paid) in Year 1. Use negative numbers for net outflows.
Net cash received (or paid) in Year 2.
Net cash received (or paid) in Year 3.
Net cash received (or paid) in Year 4.
Net cash received (or paid) in Year 5. Leave at 0 if the investment ends earlier.
Net cash received (or paid) in Year 6.
Net cash received (or paid) in Year 7.
Net cash received (or paid) in Year 8.
Net cash received (or paid) in Year 9.
Net cash received (or paid) in Year 10.
Net cash received (or paid) in Year 11.
Net cash received (or paid) in Year 12.
Your required minimum rate of return (cost of capital). Used to calculate NPV. If NPV > 0, the investment exceeds this rate.
%
The cost of borrowing / cost of capital used to discount negative cash flows in the MIRR calculation.
%
The rate at which positive cash flows are assumed to be reinvested. MIRR assumes you reinvest at this rate rather than at the IRR itself.
%
Currency
Internal Rate of Return (IRR)Exceptional return
20.5%

The annualised rate that makes NPV = 0

Modified IRR (MIRR)0.09%
Net Present Value (NPV)$3,116.41
Net cash flow$6,000.00
Gross return0.6%
Payback period2.6years
20.5% %
Negative<0%Low0%-5%Moderate5%-10%Strong10%-20%Exceptional20%+

IRR of 20.50% - investment exceeds your 8% hurdle rate.

  • The IRR of 20.50% beats your 8% hurdle rate by 12.50 percentage points. On a risk-adjusted basis the investment is creating value.
  • The Net Present Value is positive at your hurdle rate, meaning this investment is worth more in today's dollars than it costs.
  • The Modified IRR (8.86%) is lower than the IRR because it uses a more conservative reinvestment assumption. MIRR is often considered more realistic for capital budgeting.
  • Your investment recoups its initial outlay in approximately 2.6 years.
  • Undiscounted, the project returns 60.0% of the initial investment in total cash flows.

Next stepCompare the IRR against similar investment opportunities. A higher IRR beats fewer alternatives, and IRR alone does not account for project scale - pair it with NPV when choosing between different-sized projects.

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