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IRR Calculator

This IRR calculator finds the internal rate of return for an investment — the discount rate at which the investment exactly breaks even in present-value terms — from up to 5 years of cash flows. Enter your initial investment and expected yearly returns to see the IRR.

₹10,00,000

The upfront amount invested — entered as a positive number, treated as an outflow.

₹2,50,000

Net cash received in year 1 — 0 if none.

₹3,00,000

Net cash received in year 2.

₹3,50,000

Net cash received in year 3.

₹3,50,000

Net cash received in year 4.

₹4,00,000

Net cash received in year 5 — 0 if the project ends earlier.

17.82%

Total net profit (undiscounted)₹6,50,000
Total cash returned₹16,50,000

Frequently asked questions

What counts as a 'good' IRR?+

It depends entirely on your alternative options — a good IRR is one that beats your realistic alternative use of the same capital (your 'cost of capital' or opportunity cost), not a fixed universal number.

What if my project has more than 5 years of cash flows?+

Combine later years into the year-5 slot as a lump sum (with a note that this simplifies the true timing), or use a spreadsheet's IRR function directly for a project with a longer, more granular cash flow schedule.

Why might IRR and NPV give conflicting answers when comparing two projects?+

IRR is a rate (percentage), while NPV is a dollar amount — a smaller project can have a higher IRR but a lower NPV than a larger one. When comparing projects of different sizes, NPV is generally considered the more reliable decision metric.

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