Internal Rate of Return (IRR) Calculator
The Internal Rate of Return (IRR) is a popular metric used in capital budgeting to estimate the profitability of potential investments. It is the discount rate that makes the net present value (NPV) of all cash flows from a particular project equal to zero. In simpler terms, it represents the expected annual rate of return that an investment is projected to generate.
Understanding IRR helps investors and businesses make informed decisions about which projects or investments to pursue, as it provides a standardized way to compare opportunities with different cash flow patterns and initial investment amounts.
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Please enter the initial investment and cash flows to calculate the IRR.