Other Tool > # IRR Calculator,Calculate Internal Rate of Return

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Internal Rate of Return(IRR)

0%

1) The internal rate of return (IRR) is the discount rate when the total present value of capital inflows (income) is equal to the total present value of capital outflows (inputs) during the project investment process, that is, the discount rate when the net present value is equal to zero.

2) How to use the IRR calculator, enter the initial investment of the project, enter the cash income value of period 1-N (usually the annual income cycle), the cash income value requires at least one income value greater than 0, click "calculate" to get Internal rate of return; can increase or decrease the number of cash income periods; when the rate of return cannot be calculated, it is usually that the project’s rate of return is too small or too negative.

3) Calculation example:

An initial investment of 50,000 for a project, cash benefits of 6,000 in the first year, 9,000 in the second year, 10,000 in the third year, 12,000 in the fourth year, and 14,000 in the fifth year, for a total of five years.

The calculation process is 6000/(1+i) + 9000/(1+i)^2 + 10000/(1+i)^3 + 12000/(1+i)^4 + 14000/(1+i)^ 5 = 50000

The internal rate of return IRR is 0.59%.

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Release date:2021-05-10 22:21:33 Tool source:ME2 Online Tools