Internal Rate of Return (IRR) Calculator
The Internal Rate of Return (IRR) is the discount rate that makes the net present value (NPV) of all cash flows equal to zero. It represents the profitability of potential investments and can be used to compare different investment opportunities.
Key Features:
- Calculate IRR for any series of cash flows
- Add or remove periods as needed
- Handles both positive and negative cash flows
- Provides interpretation of results
Cash Flows
Usage Notes:
- Initial investment should be entered as a negative number
- Subsequent cash inflows should be positive numbers
- Cash flows must have at least one sign change for IRR to exist
- Multiple IRRs may exist for non-conventional cash flow patterns