IRR Calculator
Find the internal rate of return on an investment from the money you put in and the money it pays back.
Enter money you receive as a positive amount. If you invest more later (a further outflow), enter it as a negative amount for that period.
- Total invested
- ₹0
- Total received
- ₹0
- Net gain
- ₹0
- Money multiple
- —
IRR assumes each cash flow happens at the end of its period, evenly spaced. It measures the rate your money earned while it was invested — it doesn’t account for tax, fees or inflation.
| Period | Cash flow | Discount factor | Present value |
|---|---|---|---|
| Net present value (should be about ₹0 at the IRR) | — | ||
What is IRR?
The internal rate of return is the interest rate at which all of an investment’s cash flows — the money you put in and everything it pays back — are worth exactly zero in today’s money. In other words, it’s the rate r that solves:
0 = CF0 + CF1 ÷ (1 + r)1 + CF2 ÷ (1 + r)2 + … + CFn ÷ (1 + r)n
There’s no direct formula, so the calculator finds r numerically. When cash flows are half-yearly, quarterly or monthly, the per-period rate is annualised as (1 + r)periods per year − 1, so it can be compared with a yearly rate such as an FD or loan interest rate.
If the cash flows change from negative to positive more than once, more than one rate can satisfy the equation — the calculator warns you when that happens.