What is this calculator?
Solve the discount rate for a series of equally spaced cash flows.
What can you use it for?
Use this tool to compare a financial scenario using the assumptions you control. Solve the discount rate for a series of equally spaced cash flows.
How to use it
- Enter cash flows, starting with initial investment.
- Select Calculate (or Generate for random tools).
- Read the answer and any additional results below the form. Check the units and the limits of the method.
Formula and method
The initial flow must be negative and subsequent flows nonnegative. Bisection finds the rate that makes net present value zero.
Worked example
Cash flows, starting with initial investment: -10000, 3000, 4000, 5000. The result is 8.89633947% (irr per cash-flow period).
Assumptions and limits
Requires a conventional series: one initial negative flow, then nonnegative flows. Equal time intervals. No XIRR dates.
Frequently asked questions
What inputs does the IRR Calculator need?
Use cash flows, starting with initial investment. Read the answer and any additional results below the form. Check the units and the limits of the method.
What assumptions apply to the IRR Calculator?
Requires a conventional series: one initial negative flow, then nonnegative flows. Equal time intervals. No XIRR dates.