IRR Calculator

Calculate the internal rate of return (IRR) for an investment with a regular series of future cash flows.

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Enter your initial investment and future cash flows to calculate the internal rate of return (IRR).

Initial investment *

₹

Future cash flows *

Comma-separated cash flow received at the end of each period, e.g. one per year.

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 bisection

Worked example

₹1L investment, ₹30,000/year for 5 years

Worked example: ₹1L investment, ₹30,000/year for 5 years
Field	Value
Initial investment	100000
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.
Informational only.

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.

Related calculators

Sources

Mutual Fund Systematic Investment Plans — Securities and Exchange Board of India (SEBI). Effective 01-01-2020, reviewed 13-09-2026.

This calculator provides a general estimate only and does not constitute investment advice.

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