IRR Calculator

Compare signed cash flows with periodic IRR or dated XIRR, NPV at your hurdle, and explicit MIRR assumptions.

Signed cash-flow ledger

US dollars. Negative means cash paid; positive means cash received. Zero is a cash flow; a blank amount needs attention.

Timing modePeriods per year

Time zero · cash flow

Paste a larger ledger

One signed amount per line for periodic mode. For dated mode use YYYY-MM-DD,amount. Maximum 128 rows including time zero. Import replaces the editor only after every row validates.

Cash-flow lines

Hurdle rate (%)Finance rate (%)Reinvestment rate (%)

Root-search domain

Rates strictly above −100%. Found roots are verified within these bounds; an empty result does not rule out roots outside them. Near-repeated roots can be ill-conditioned.

Minimum rate (%)Maximum rate (%)

Device privacy

Cash flows stay in this page unless you explicitly save or share them. A saved draft is readable by other users of this browser profile.

Remember this draft on this device

Net present value at your hurdle

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Enter a signed cash-flow ledger to analyze.

IRR result

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MIRR with entered assumptions

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MOIC · all receipts / all payments

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Profitability index · PV receipts / PV payments

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Nominal payback · at receipt

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Discounted payback · at receipt

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Found roots & numerical receipt

Verified roots in the searched domain
Root	Effective annual rate	Scaled residual	Condition

Signed cash-flow timeline

Chart minimum rate (%)Chart maximum rate (%)

NPV profile data

NPV profile at the displayed rates
Discount rate	NPV

Separate reinvestment illustration

This optional illustration compounds separately entered capital at an assumed annual rate. It does not roll the project forward at its IRR or predict asset-class returns.

Show the hypothetical projection

Separate starting capital (USD)Assumed effective annual return (%)Projection years

Hypothetical wealth milestones
Multiple	Years at assumed rate	Value

Uniform-receipt target solver

Replace every future ledger amount with the same positive receipt at its existing time. Time-zero cash paid stays fixed. The target uses the current period basis; zero is a valid target.

Target rate (%)

3 min read 5 steps 8 terms 2 examples 8 FAQs NPV(r) = Σₜ₌₀ⁿ CFₜ / (1+r)ᵗ; NPV(IRR) = 0

Start with the signed ledger, timing basis and NPV at the hurdle.

YMYL Reviewed by Calculover Editorial Review · Updated 2026-05-10 · 4 sources

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Walk-through

How to Use This Calculator

5 steps

Choose the timing basis

Use periodic mode for equally spaced flows and select their frequency. Use dated XIRR for actual calendar dates.

Enter signed cash flows

Money paid is negative; money received is positive. Include time zero. An initial financing receipt can be positive.

Set explicit discount assumptions

Match hurdle, finance and reinvestment rates to the mode’s stated basis. Zero is a valid entered assumption.

Read NPV and the solver state

Read NPV at the hurdle first, then roots found within the displayed bounds, residuals and warnings. Multiple roots are ambiguous.

Compare and export carefully

Align valuation date and hurdle across projects. Preview included figures before sharing; exported flows and dates may be sensitive.

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Reference

Formula & Methodology

3 formulas

Periodic NPV and IRR

NPV(r) = Σₜ₌₀ⁿ CFₜ / (1+r)ᵗ; NPV(IRR) = 0

CFₜ is a signed flow at period t, including time zero. r is effective per selected period. For m periods per year, the annual equivalent is (1+r)^m−1.

Dated XNPV and XIRR

XNPV(r) = Σᵢ CFᵢ / (1+r)^((dᵢ−d₀)/365); XNPV(XIRR) = 0

Use actual calendar-day differences divided by 365, including leap-day intervals. r and XIRR are annual effective rates, not rates per payment.

MIRR with explicit rates

MIRR = (FV_positive / |PV_negative|)^(1/T) − 1

Discount negative flows at the finance rate and compound positive flows at the reinvestment rate. T is the final period index or elapsed Actual/365 years. The dated extension is not Excel’s periodic MIRR.

✓

YMYL

Trust, Methodology & Sources

Reviewed by Calculover Editorial Review · Updated 2026-05-10 · 4 sources

Editorial accountability

Author: Quinn Sumner - Editor

Owner: Quinn Sumner - Editorial owner

Reviewer: Calculover Editorial Review - Source and limitation review

Last reviewed: 2026-05-10

Last verified: 2026-05-10

Data effective: 2026-05-10

Methodology

Periodic NPV/IRR, dated Actual/365 XNPV/XIRR and explicitly parameterized MIRR use entered signed cash flows. Roots found in the disclosed search domain are numerical estimates.

Assumption: Signs describe money paid and received from one consistent perspective. Time zero and every entered period or date remain part of the ledger.

Assumption: Periodic rates use the selected interval; dated rates are annual effective on Actual/365. Finance, reinvestment and hurdle rates are explicit user assumptions, including zero.

Assumption: Flows use one currency without conversion. Fees, taxes, inflation, risk and terminal proceeds are included only when represented in the entered scenario.

Limitations & guidance

A finite search does not prove all real roots were found. No-root-found and nonconvergence states must not be read as a global mathematical proof.

IRR and MIRR do not predict market returns or establish reinvestment opportunities. An optional illustration is conditional on its separate assumptions.

The dated MIRR method is a disclosed extension, not Excel’s periodic MIRR. Rounding, ill-conditioning, missing costs and different timing conventions can change comparisons.

Professional guidance: For financial mathematics education. Results are conditional calculations, not investment, tax or legal advice, a suitability assessment or an approval recommendation.

Primary sources

IRR function - Microsoft Support

XIRR function - Microsoft Support

XNPV function - Microsoft Support

MIRR function - Microsoft Support

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Glossary

Key Terms Explained

8 terms

Periodic IRR A per-period discount rate that makes periodic NPV zero. It does not establish an available reinvestment return.

XIRR (Actual/365) An annual effective rate that makes dated XNPV zero using actual elapsed days over 365. Uniqueness is not guaranteed.

NPV at the hurdle The signed present value of entered flows at the valuation date. Its sign compares the scenario with the chosen discount assumption, not suitability.

Hurdle rate The discount assumption you choose for comparison. Its period basis must match the timing mode; it is not a recommended market target.

MIRR A return summary using explicit finance and reinvestment assumptions. It is neither universally better than IRR nor necessarily lower.

Finance and reinvestment rates The finance rate discounts negative flows; the reinvestment rate compounds positive flows to the horizon. Both are entered assumptions.

Found root and residual A candidate within the searched bounds and its remaining NPV error. A small residual alone does not make an ill-conditioned rate stable.

MOIC and profitability index MOIC uses undiscounted inflows divided by outflows; PI uses their discounted values. Both require an outflow and neither replaces timing-aware NPV comparison.

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Scenarios

Real-World Examples

2 worked examples

Sarah — Real Estate Development

Office-to-Residential Conversion

Year 0 Investment −$2,000,000 Year 1 Cash Flow $300,000 Year 2 Cash Flow $500,000 Year 3 Cash Flow $800,000 Year 4 Cash Flow $1,200,000 Hurdle Rate 12%

IRR = 11.97%; NPV at 12% = −US$1,500.03. Total inflows are US$2.8 million, so MOIC = 1.40×. These annual year-end flows fall slightly below the selected hurdle.

Marcus — Manufacturing Equipment

CNC Machine Upgrade

Year 0 Investment −$500,000 Year 1 Cash Flow $120,000 Year 2 Cash Flow $150,000 Year 3 Cash Flow $180,000 Year 4 Cash Flow $180,000 Year 5 Cash Flow $180,000 Hurdle Rate 10%

IRR = 17.22%; NPV at 10% = US$103,002.78; PI = 1.206. With year-end receipts, nominal payback occurs in year 4.

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Reference

Cite This Calculator

APA & MLA

Use either format to cite this calculator in a paper, report, or resource list.

APA

MLA

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Deep Dive

Reading cash-flow return results

5 chapters · 3 min read

Start with the signed ledger, timing basis and NPV at the hurdle. IRR summarizes a zero of that valuation function; it cannot alone rank projects of different scale, duration or risk.

Periodic timing versus calendar dates

Periodic IRR is effective per selected interval. Dated XIRR uses actual elapsed days divided by 365 and is annual effective, even across a leap year. Do not compare a monthly rate directly with an annual hurdle. Time zero belongs in NPV; the worked examples below retain annual year-end timing.

Investment, financing and mixed flows

A conventional investment pays out first and receives later; financing receives first and pays later. Under the conventional pattern, their IRR comparisons run in opposite directions. Mixed sign changes can produce several roots. Read the NPV sign at the chosen hurdle, with approximate break-even near the scaled tolerance; it is not a universal recommendation.

Finite search and numerical sensitivity

The rate domain stays above −100%. Read the displayed search bounds and each candidate’s residual. A finite search is not proof that all roots exist within it or were found. No root found, invalid data and nonconvergence are different states. Near-flat profiles can make a reported rate sensitive even when its residual is small.

MIRR and the optional illustration

MIRR makes financing and reinvestment assumptions explicit. Its dated version uses elapsed Actual/365 years and is a separate extension, not Excel MIRR. Neither MIRR nor a wealth illustration proves that funds can earn the assumed return. A project IRR must not become an automatic reinvestment forecast.

Comparable projects and private records

Use matching currencies, valuation dates, hurdle assumptions and included costs. MOIC ignores timing; PI uses discounted inflows and outflows. Keep sensitive account identifiers out of the ledger. Check shared figures and exported raw flows, dates, rate basis, root bounds, residuals and MIRR assumptions before distributing a report.

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Questions

Frequently Asked Questions

8 questions

Are all displayed returns annual?+

No. Periodic IRR is effective per selected period; a monthly IRR is monthly. Dated XIRR is annual effective on Actual/365. Compare rates only after aligning their basis.

Why does financing reverse the IRR comparison?+

For a conventional investment, IRR above the hurdle corresponds to positive NPV. For financing received first and repaid later, a lower funding IRR can produce positive NPV. Mixed flows have no universal IRR rule; inspect NPV.

Does a root list prove that all IRRs were found?+

No. It reports candidates found within disclosed bounds and numerical limits. Multiple sign changes allow ambiguity but do not prove a count of roots. No root found in a range is not proof that no root exists anywhere.

What do residual and ill-conditioning mean?+

Residual measures how far NPV remains from zero at a candidate rate. If the profile is nearly flat, small input changes can move the rate substantially. A small residual is not a guarantee of rate precision; heed solver warnings.

Does IRR assume that I can reinvest at that rate?+

No available reinvestment return is established by the IRR equation. MIRR explicitly uses your finance and reinvestment assumptions; it need not be below IRR. The dated MIRR extension is distinct from Excel MIRR. Any optional illustration has separate assumptions.

Why keep zero flows and the full horizon?+

A zero is a real no-payment period, not a missing entry. Removing it can change timing; a trailing zero preserves the MIRR horizon. Blank or malformed entries should be completed or corrected, not silently treated as zero.

How should I read approximate break-even?+

Numerical equality uses tolerance scaled to the cash flows. Near-zero NPV is approximately break-even under the entered assumptions, not proof of identical economics or a guarantee. Compare projects at the same date, currency and rate basis.

What should I check before sharing or exporting?+

Keep creditor, account and personal identifiers out. Review any included amounts and dates in the disclosure preview. A report may include raw flows, rate basis, searched bounds, roots, residuals and MIRR assumptions; store it with appropriate privacy.

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IRR Calculator

Signed cash-flow ledger

Found roots & numerical receipt

Signed cash-flow timeline

Compare projects at the same hurdle

NPV sensitivity matrix

Project comparison

Signed time-zero break-even cash flow

Separate reinvestment illustration

Uniform-receipt target solver

How to Use This Calculator

Choose the timing basis

Enter signed cash flows

Set explicit discount assumptions

Read NPV and the solver state

Compare and export carefully

Formula & Methodology

Trust, Methodology & Sources

Key Terms Explained

Real-World Examples

Sarah — Real Estate Development

Marcus — Manufacturing Equipment

Cite This Calculator

Reading cash-flow return results

Periodic timing versus calendar dates

Investment, financing and mixed flows

Finite search and numerical sensitivity

MIRR and the optional illustration

Comparable projects and private records

Frequently Asked Questions

Get a branded PDF of your results

Signed cash-flow ledger

Found roots & numerical receipt

Signed cash-flow timeline

Compare projects at the same hurdle

NPV sensitivity matrix

Project comparison

Signed time-zero break-even cash flow

Separate reinvestment illustration

Uniform-receipt target solver

Review before sharing

How to Use This Calculator

Choose the timing basis

Enter signed cash flows

Set explicit discount assumptions

Read NPV and the solver state

Compare and export carefully

Formula & Methodology

Trust, Methodology & Sources

Key Terms Explained

Real-World Examples

Cite This Calculator

Reading cash-flow return results

Periodic timing versus calendar dates

Investment, financing and mixed flows

Finite search and numerical sensitivity

MIRR and the optional illustration

Comparable projects and private records

Frequently Asked Questions

Get a branded PDF of your results

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