Internal Rate of Return
Solve the return of a conventional investment cash-flow sequence.
Your numbers
IRR per period
Educational estimate using your assumptions; no live rates, tax rules or investment recommendations. Returns can be negative and are not guaranteed.
Scenario comparison
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Formula
Find a supported r satisfying Σ Cₜ/(1+r)^t = 0. Cₜ is the equally spaced cash flow at period t, starting at time zero. r is the return per cash-flow period; a cash-flow series can have no root or multiple roots.
Solve the return of a conventional investment cash-flow sequence.
Worked example
- Cash flows at equally spaced period ends, starting at time 0
- -1000, 400, 400, 400
- IRR per period
- 9.70102574033 %
Scope and limitations
Educational estimate using your assumptions; no live rates, tax rules or investment recommendations. Returns can be negative and are not guaranteed.
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Formula version: 041c803750f7 · Example checked: