IRR Calculator
Calculate IRR (Internal Rate of Return) to compare investment returns.
Enter cash flows and click
Calculate IRR
What is IRR?
IRR (Internal Rate of Return) is the discount rate where NPV equals zero. It is the effective annual return on an investment.
IRR Usage
- Compare different investments
- Higher IRR indicates better returns
- IRR > cost of capital = good investment
IRR Example
Investment of ₹10 lakh returning ₹3L, ₹4L, ₹4L, ₹3L in 4 years:
- IRR ≈ 7.71% per annum
Frequently Asked Questions
-
IRR accounts for varying cash flows. CAGR assumes equal periodic compounding.
-
Compare IRR to your cost of capital. Higher IRR is better. Typical range is 8-15%.