IRR Calculator
The discount rate that sets NPV to about zero. Click any i for detail.
Cash flows
Initial outlay ($)
i
Initial
Cash you put in at t = 0 (entered as a positive number). |
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Annual cash flow ($)
i
CF
Level cash flow at the end of each year. |
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Years
i
Years
How many annual cash flows. |
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Terminal / sale ($)
i
Terminal
Extra cash at the end of the last year (sale proceeds, salvage). Use 0 if none. |
How to use this calculator
- Enter the initial investment.
- Enter a repeating annual cash flow.
- Set years and optional sale proceeds.
- Compare to NPV at a rate you choose on the NPV page.
Results explained
Newton sketch on −initial + Σ CF/(1+r)^t + terminal/(1+r)^n. Cap rate and cash-on-cash are simpler fractions, not IRRs.
Quick reference: IRR
IRR is a rate. NPV is a dollar amount at a rate you pick.
| Item | Detail |
|---|---|
| Level CF model | This page |
| Uneven CFs | Spreadsheet |
| NPV at a chosen r | NPV calculator |
| Unlevered cap | Cap rate calculator |
A weird sign pattern can mean no unique IRR — we will say so.
How the estimate is built
Find r such that NPV(r) ≈ 0.
Example scenario
$100k in, $12k/year for 8 years, $110k sale — read IRR on the result.
FAQ
Monthly cash flows?
Convert to annual or use a spreadsheet.
Vs CAGR?
CAGR uses two values only, no interim CF.
Levered property?
Use cash-on-cash for a simple levered yield; IRR still needs the cash-flow series.