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Internal Rate of Return (IRR) Calculator

Enter the initial investment and the yearly cash flows to get the internal rate of return and, optionally, the net present value at your hurdle rate.

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One year per line; use minus for outflows.

Your cost of money or the lowest return you accept.

Internal rate of return36.44%The yearly rate at which the NPV is zero
  • Hurdle rate35%
  • NPV at the hurdle rate25,257.74 ₺
  • Total inflows2,200,000.00 ₺
  • Total outflows1,000,000.00 ₺

How it is calculated

The internal rate of return is the project’s own yield: the rate at which the present value of its flows equals the investment. Above your cost of money, the project creates value. If the flows change sign more than once there may be several solutions, so read it with the NPV.

Formula0 = −Yatırım + Σ Nₜ ÷ (1 + IRR)^tIRR is the yearly rate at which NPV is zero; the equation is solved numerically by bisection.

Example

A ₺1,000,000 project returning 400,000, 500,000, 600,000 and 700,000 over four years has an IRR of 36.44%, above a 35% hurdle, so it pays by that test.

Frequently asked questions

Does it match Excel’s IRR?

Yes, for evenly spaced yearly flows it solves the same equation. Irregular dates need a day-based method like Excel’s XIRR.

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