IRR Calculator
Calculate the internal rate of return (IRR) for an investment with a regular series of future cash flows.
- Free to use
- No registration required
- Works on all devices
- Last updated
- 13-09-2026
Your result
15.24%
IRR
AI explanation
Formula
The periodic rate that discounts the cash flow series to a net present value of zero, solved via bisectionWorked example
₹1L investment, ₹30,000/year for 5 years
| Field | Value |
|---|---|
| Initial investment | ₹1,00,000 |
| Future cash flows | 30000, 30000, 30000, 30000, 30000 |
| IRR | 15.24 |
Assumptions
- Assumes cash flows occur at regular, evenly-spaced intervals (e.g. annually) starting one period after the initial investment.
- For irregularly-dated cash flows, use the XIRR Calculator instead.
Frequently asked questions
What does IRR tell me about an investment?
It's the rate of return at which the investment breaks even in present-value terms — comparing IRR to your required rate of return (or cost of capital) tells you whether the investment is worthwhile.
How is IRR different from a simple average return?
IRR accounts for the time value of money — cash flows received sooner are worth more than those received later, which a simple average of returns ignores.
When should I use XIRR instead of IRR?
Use XIRR when your cash flows don't occur at perfectly regular intervals (e.g. dates vary or amounts are added irregularly) — IRR assumes evenly spaced periods.
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Sources
- Mutual Fund Systematic Investment Plans — Securities and Exchange Board of India (SEBI). Effective 01-01-2020, checked 13-09-2026.
This calculator provides a general estimate only and does not constitute investment advice.
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