Expected Future Cash Flows
Results will appear here
Results
Internal Rate of Return (IRR)
How to Use
- Enter Initial Investment: Input the capital invested at the start (as Year 0, typically a negative value).
- Add Cash Flows: Click 'Add Year' to include expected future returns.
- Enter Amounts: Input the net cash inflow or outflow for each year (positive for inflow, negative for outflow).
- Calculate: Click 'Calculate IRR' to iteratively find the internal rate of return.
- View Results: The calculated IRR will be displayed below to help evaluate investment viability.
Tips & FAQ
Calculation Method: IRR is the discount rate that makes NPV zero. This tool uses numerical methods (like Newton's method) to approximate it.
Cash Flow Rules: You must have at least one positive and one negative cash flow (initial investment) to calculate a valid IRR.
Investment Decision: Generally, if IRR exceeds the cost of capital or required return, the project is considered viable.
Privacy: All calculations are performed locally in your browser. Your investment data is never uploaded to any server.
