Interactive calculator — Coming Soon
Initial Investment
20,000 (example)
Cash Flows — Years 1–3
8,000 / 9,000 / 10,000 (example)
Internal Rate of Return
≈ 15.95%
How the IRR Calculator Works
Definition: IRR is the discount rate at which a project’s Net Present Value equals zero — the break-even rate of return.
Unlike ROI or CAGR, IRR has no simple algebraic formula; it’s found by testing discount rates until NPV lands at zero. In the example above, initial investment of 20,000 against cash flows of 8,000, 9,000 and 10,000 over three years breaks even at approximately 15.95%. The interactive version of this tool will solve for IRR automatically.
This tool is provided for general informational purposes only and does not constitute financial advice. Verify results independently before making financial decisions.