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Professional IRR calculator with NPV, payback period, and profitability index. Analyze investment projects, compare multiple opportunities, and make data-driven financial decisions with real-time visualizations.
IRR > Discount Rate: Accept the project
IRR = Discount Rate: Neutral decision
IRR < Discount Rate: Reject the project
IRR represents the break-even rate of return. Higher IRR indicates better investment opportunity.
Newton-Raphson iterative method for precise internal rate of return calculation with high accuracy
NPV, payback period, profitability index, and net profit analysis in one tool
Visual cash flow analysis with cumulative and present value charts for better insights
Real estate, startup, and equipment investment templates for quick analysis
Input the total upfront cost of your investment project or use pre-loaded templates.
Enter expected cash flows for each year. Include both positive inflows and negative outflows.
Enter your required rate of return or cost of capital for NPV calculation.
Review IRR, NPV, payback period, and charts to make informed investment decisions.
IRR is the discount rate that makes the Net Present Value (NPV) of all cash flows equal to zero. It represents the annualized rate of return for an investment.
Compare IRR with your required rate of return (hurdle rate) to evaluate investment opportunities.
IRR considers time value of money and provides annualized returns, while ROI is a simple percentage.
IRR has limitations including multiple IRR problem and reinvestment rate assumption.
Annualized rate of return. Typical targets: Real Estate 15-20%, Startups 25-35%, Corporate 12-18%
Present value of cash flows minus investment. Positive NPV indicates value creation
Time to recover investment. Typical targets: <3 years for most businesses, <2 years preferred
PV of cash flows / Initial investment. PI > 1 indicates favorable project
More realistic than IRR with reinvestment rate assumption for improved accuracy
Simple percentage return without time consideration. ROI = (Gain - Cost) / Cost × 100%
Calculate return on investment percentage
Plan long-term investments with goal tracking
Calculate investment recovery time
Analyze investment returns and CAGR
Calculate compound growth over time
Calculate bond yields and returns
Calculate present value of future cash flows
Calculate future value of investments
Plan your savings goals
Don't rely solely on IRR. Combine it with NPV, payback period, and profitability index for comprehensive analysis. IRR shows rate of return, while NPV shows absolute value creation. Projects with higher NPV may create more value despite lower IRR.
Higher IRR should compensate for higher risk. Adjust discount rate based on project risk profile. Use sensitivity analysis to test different scenarios. Conservative cash flow estimates typically lead to more reliable investment decisions.
Include all cash flows: initial investment, operating costs, maintenance, taxes, and terminal value. Use after-tax cash flows for realistic analysis. Consider opportunity costs and working capital requirements in your calculations.
Disclaimer: This calculator provides estimates for educational and informational purposes. Investment decisions should be made after consulting with qualified financial advisors who understand your specific situation, risk tolerance, and financial goals. Past performance does not guarantee future results.
This IRR exceeds typical real estate returns of 12-15%, indicating a potentially strong investment opportunity. Always verify assumptions and consider market conditions.
IRR of 16.8% exceeds the company's 12% cost of capital, suggesting a potentially profitable investment. Consider maintenance costs and technological obsolescence.