What does a higher IRR mean?

A higher IRR generally means a more attractive investment, since it represents the annualized rate of return the cash flows imply — compare it to your required rate of return or discount rate.

IRR Calculator

Investing

Calculate the internal rate of return for a series of regular periodic cash flows.

Display currency

Changing the display currency only changes the symbol shown — amounts aren't converted, since this tool doesn't use live exchange rates.

Enter one cash flow per period (year 0, year 1, year 2, …). Period 0 is usually the negative initial investment.

IRR

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How this is calculated

IRR solves for the discount rate that makes the net present value of the cash flow series equal zero, assuming each entry represents one equally-spaced period — solved numerically (Newton-Raphson with a bisection fallback).

Frequently asked questions

What does a higher IRR mean?: A higher IRR generally means a more attractive investment, since it represents the annualized rate of return the cash flows imply — compare it to your required rate of return or discount rate.

XIRR Calculator

Calculate the annualized return on a series of cash flows made on irregular dates.

NPV Calculator

Calculate the net present value of a series of cash flows at a given discount rate.

ROI Calculator

Calculate return on investment, with an annualized ROI option for multi-year holdings.