Find the internal rate of return and NPV of a series of cash flows.
IRR is the discount rate that makes the net present value of the cash flows zero. Investing ₹1,00,000 and receiving ₹30,000, ₹40,000, ₹50,000 and ₹20,000 gives an IRR of 15.322%.
The internal rate of return (IRR) is the annualised return of an investment with uneven cash flows. Enter the cash flows in order — the initial investment as a negative number first, then the returns — and the calculator finds the IRR and the NPV at a discount rate you choose.
IRR is useful for comparing projects, but it assumes cash flows are reinvested at the same rate and can mislead when flows change sign several times. Pair it with NPV and the Payback Period Calculator; see also the ROI Calculator.
The calculator applies the standard financial formulas step by step.
| Item | Value |
|---|---|
| Number of periods | 4 |
| Total invested (negative flows) | −₹1,00,000.00 |
| Total received (positive flows) | ₹1,40,000.00 |
| IRR per period | 15.322% |
| NPV at the discount rate | ₹11,556.59 |
| Case | IRR |
|---|---|
| Discount rate 6% | 15.322% |
| Discount rate 10% | 15.322% |
| Discount rate 15% | 15.322% |
| Discount rate 20% | 15.322% |
| Discount rate 0% | 15.322% |
The discount rate at which an investment's net present value is zero — a measure of its annualised return.
One higher than your required return or cost of capital. Many investors compare it with alternatives of similar risk.
Net present value: the present value of all cash flows, discounted at your required rate. Positive means the investment adds value.
IRR needs at least one outflow and one inflow, otherwise no rate makes NPV zero.
XIRR uses exact dates for each cash flow. This calculator assumes equal periods between flows.
Multiple sign changes can give several IRRs, and it assumes reinvestment at the IRR. Use NPV alongside it.
It uses the standard formula: 0 = Σ CFₜ ÷ (1 + IRR)ᵗ The full method and a worked example are shown on this page.
No. The calculator gives estimates for planning and learning. Real offers vary by lender, product and date, so confirm the details with your bank, lender or a qualified adviser before deciding.
Yes. The maths is identical in any currency; only the currency symbol shown in the results differs.
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