Internal rate of return (IRR) is the discount rate that makes the net present value of all cash flows equal to zero. The IRR Calculator annualizes that rate so you can compare investments of different lengths.

What is the difference between General, Cash flows, and Multiple modes?

General uses starting balance, ending balance, and optional recurring flows. Cash flows lists each year separately. Multiple expresses the exit as a return multiple (0.5×–19.9×) over your chosen period.

How is IRR different from ROI?

ROI compares total gain to cost using fixed values. IRR weights when money moves — $200 returned in year one beats the same $200 in year ten. Use both metrics for a fuller picture.

Yes. When total inflows are less than outflows, IRR is negative — the investment lost money on a time-adjusted basis. Try the Cash flows mode with irregular yearly returns to see this clearly.

What contribution frequencies are supported?

In General mode you can model weekly, biweekly, semimonthly, monthly, quarterly, semiannual, or annual deposits or withdrawals alongside your initial investment and ending balance.

How does IRR relate to the Future Value Calculator?

The Future Value Calculator projects growth from a rate and contributions. IRR works backward from cash flows to find the implied return. For smoothed growth between two balances, see the CAGR Calculator.

IRR Calculator – shoutingnow.com

IRR calculation result

Note: This calculator is for illustrative purposes only and does not constitute financial advice.

How to use this IRR calculator

Choose a currency symbol for display (no exchange-rate conversion).
Select a calculation type:
- General — initial investment, ending balance, optional regular deposits or withdrawals, and a time period.
- Cash flows — initial investment plus yearly inflows/outflows (use +/− toggles and add or remove years).
- Multiple — express the exit as a return multiple (0.5× through 19.9×) over years and months.
Click Calculate — annualized IRR %, gross return, return above investment, and a breakdown chart update together.

To project how savings could grow with compounding and contributions, use the Future Value Calculator via the tabs above the form.

What is IRR?

Internal rate of return (IRR) is the interest rate that makes the net present value (NPV) of all cash flows from an investment equal to zero. A higher IRR generally means a more profitable opportunity — useful when comparing projects, funds, or business investments that pay back at different times.

IRR accounts for the time value of money: money received sooner is worth more than the same amount received later. It also assumes interim cash flows can be reinvested at the IRR itself, which is why IRR is best read alongside other metrics for long-term decisions.

NPV and IRR relationship

IRR is found by solving the NPV equation for the rate r where NPV equals zero:

C_t = cash flow at time t, r = IRR, n = number of periods

Worked example (General mode)

You invest $12,000 and receive $16,000 after 5 years with no interim contributions:

IRR ≈ 5.92% per year (annualized from monthly periods)
Gross return ≈ 33.33%
Return above investment = $4,000

Irregular cash flows

Real investments rarely pay back in equal yearly chunks. In Cash flows mode, enter each year’s inflow or outflow separately — timing matters as much as totals when judging whether an opportunity was worthwhile.

IRR vs ROI vs CAGR

ROI measures total gain relative to cost but does not inherently weight cash flows by time. CAGR smooths growth between a start and end value. IRR is strongest when you have multiple dated cash flows. For modeling periodic deposits with compounding, see the Compound Interest Calculator.

Examples and use cases

Real-world use cases

Rental property: An investor enters purchase price, annual rents, and sale proceeds to see if IRR beats their target hurdle rate.
Startup equity: A founder models cash invested plus projected exit value across uneven funding rounds.
Equipment lease vs buy: A business compares IRR on buying machinery outright vs financing with irregular maintenance outflows.

IRR Calculator