Is your investment actually profitable? The Internal Rate of Return (IRR) cuts through the noise to reveal your annualized return rate. Our free calculator—with gross return and deficit analysis—helps you make data-driven decisions.
IRR Calculator
What is IRR (Internal Rate of Return)?
The Internal Rate of Return (IRR) is the annualized rate of return that makes the Net Present Value (NPV) of all cash flows from an investment equal to zero. In simpler terms, it tells you the break-even interest rate where an investment becomes profitable.
How is IRR Calculated?
IRR is the discount rate (r) that satisfies:
Where:
- CFt = Cash flow at time t
- IRR = Internal Rate of Return
- n = Number of periods