How to Use the IRR Calculator
Enter initial investment (as negative number) and cash flows for each year (up to 20). Also enter a discount rate to calculate NPV. Results include IRR, NPV, and MIRR.
IRR Calculator Formula
Find r where NPV = Σ Ct/(1+r)^t = 0 (Newton-Raphson iteration)Ct= Cash flow at time tr= IRR — rate that makes NPV = 0
Example Calculation
Investment −₹1,00,000; returns: Y1=₹20K, Y2=₹30K, Y3=₹40K, Y4=₹50K:
Newton-Raphson: iterate until NPV < 0.001
IRR ≈ 18.7%; NPV at 12% ≈ ₹14,250
Frequently Asked Questions
What is a good IRR?
IRR should exceed your cost of capital (hurdle rate). For Indian equity investments, IRR > 12–15% is generally considered good. Real estate investments typically target IRR > 15–18%.