# IRR Calculator

Use this calculator to calculate the internal rate of return (IRR) and measure the profitability of an investment. Simply enter your initial investment figure and yearly cash flow figures. You can add and remove years as you require. An explanation of IRR is available further down this page.

#### Disclaimer

Whilst every effort has been made in building the IRR calculator tool, we are not to be held liable for any special, incidental, indirect or consequential damages or monetary losses of any kind arising out of or in connection with the use of the calculator tools and information derived from the web site. This tool is here purely as a service to you, please use it at your own risk.

The calculations given by the IRR calculator tool are only a guide. Please speak to an independent financial advisor for professional guidance. Read the full disclaimer.

## IRR calculator - FAQ

### What is IRR?

IRR stands for **internal rate of return** and is used in capital budgeting to measure the potential profitability of an investment. It can be defined as the
interest rate that makes the Net Present Value (NPV) of all cash flows from the investment equal to zero.

### Other calculators

For assistance calculating the compound annual growth rate of an investment, see the CAGR calculator. Alternatively, to calculate the interest rate on a loan, try the interest rate calculator.

If you have any problems using this IRR calculator then please contact me.