IRR stands for Internal Rate of Return and is a financial metric used to measure the profitability of an investment. It is calculated by taking the present value of all cash flows from the investment and dividing it by the initial investment. IRR is used to compare the profitability of different investments and to determine whether an investment is worth making.
An IRR calculator is a tool used to calculate the internal rate of return (IRR) of an investment. It is used to determine the profitability of a project or investment by calculating the rate of return on the invested capital. The IRR calculator takes into account the initial investment, the expected cash flows, and the time period of the investment.
1. Calculate the net present value (NPV) of all cash flows. 2. Set the NPV equal to zero and solve for the discount rate (r). 3. The discount rate (r) is the internal rate of return (IRR).
Cite this content, page or calculator as:
Andy, Cohen “IRR Calculator” at
from FreeCalculator.net, https://www.freecalculator.net
FreeCalculator.net’s sole focus is to provide fast, comprehensive, convenient, free online calculators in a plethora of areas. Currently, we have over 100 calculators to help you “do the math” quickly in areas such as finance, fitness, health, math, and others, and we are still developing more. Our goal is to become the one-stop, go-to site for people who need to make quick calculations. Additionally, we believe the internet should be a source of free information. Therefore, all of our tools and services are completely free, with no registration required.
We coded and developed each calculator individually and put each one through strict, comprehensive testing. However, please inform us if you notice even the slightest error – your input is extremely valuable to us. While most calculators on FreeCalculator.net are designed to be universally applicable for worldwide usage, some are for specific countries only.
© 2021 – 2024 FreeCalculator.net | All rights reserved.