Your IRR Calculator & Financial Tools Hub

Advanced IRR Calculator

Try Example Scenario:

Advanced IRR Calculation

This advanced calculator offers more flexibility for complex investment scenarios.

How to Use This Tool

  • Initial Investment: Enter the total upfront cost.
  • Cash Flow ($): Enter the cash flow amount for a period or a series of identical periods.
  • Periods: If a cash flow amount repeats, enter the number of consecutive periods it occurs (e.g., $5000 for 3 periods).
  • Length of Each Period: Specify the duration of a single period in months. For annual cash flows, enter 12. For quarterly, enter 3.

Interpreting the Result

The calculator provides both the IRR for the specified period and the Annualized IRR, which is crucial for comparing investments with different period lengths on an equal basis.

For a simpler calculation with only annual cash flows, you can use the basic IRR calculator on our homepage.

Internal Rate of Return (IRR):

--.--%

Frequently Asked Questions (FAQ)

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 equal to zero. It represents the true time-weighted profitability of an investment.

Learn more: What is IRR? →

How to calculate IRR in Excel? ▼

You can use two primary functions in Excel:

  • =IRR(values) for cash flows occurring at regular intervals.
  • =XIRR(values, dates) for cash flows occurring at irregular dates (more accurate).

Full Guide: Calculate IRR Step-by-Step →

What is the difference between IRR and XIRR? ▼

IRR assumes that all cash flows occur at equal time intervals (e.g., annually or monthly).

XIRR (Extended IRR) allows for cash flows to occur on specific dates. It is the standard metric for SIPs (Systematic Investment Plans), Mutual Funds, and stock portfolios where money is invested at different times.

💡 Our calculator supports XIRR mode for exact dates.

How to calculate IRR manually (by hand)? ▼

Calculating IRR by hand requires the "Trial and Error" method because there is no simple formula:

  1. Guess a rate (e.g., 10%).
  2. Calculate the NPV. If NPV > 0, guess a higher rate. If NPV < 0, guess lower.
  3. Repeat until NPV is close to zero.

It's tedious. Using our calculator above is instant.

How to use a financial calculator (TI-84 / BA II Plus)? ▼

Quick steps for common models:

  • TI-84 Plus: Press APPS → 1:Finance → 8:irr(. Enter as irr(-initial, {flows}). Note: Initial investment must be negative.
  • BA II Plus: Press CF → 2nd CLR WORK. Enter CF0 (negative) → ENTER → ↓. Enter cash flows (`C01`) pressing ENTER → ↓ after each. Finally, press IRR → CPT.
What is a "good" IRR? ▼

A "good" IRR depends on the asset class and risk profile. Generally: Bonds/Safe Assets: 3-5%, Stocks/ETFs: 8-12%, Real Estate: 10-15%, Venture Capital: 20%+. It should always exceed your cost of capital.

IRR Benchmarks by Industry →

What is the difference between IRR and ROI? ▼

ROI (Return on Investment) only measures total profit relative to cost, ignoring time. IRR (Internal Rate of Return) accounts for the time value of money. For long-term investments, IRR is a more accurate metric than ROI.

ROI vs IRR Comparison →

Why does the calculator show an error? ▼

IRR calculation requires both an investment and returns. This calculator handles the sign conversion internally—just enter positive numbers. If you see an error, check: 1) Did you enter an initial investment? 2) Do you have at least one positive cash flow return?