IRR Calculator (Internal Rate of Return)
Compute the internal rate of return for a series of cash flows. IRR is the discount rate that makes NPV zero — i.e., the annualized yield on an investment.
Inputs
IRR
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MOIC (multiple on invested capital)
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NPV at 10% discount
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Total invested
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Total received
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About IRR Calculator (Internal Rate of Return)
IRR vs CAGR
CAGR assumes one upfront investment and one final value — no interim cash flows. IRR handles irregular cash flows: capital calls, distributions, and so on. IRR equals CAGR when there is only an initial and final flow.
Multiple IRR problem
When cash flow signs change more than once (negative-positive-negative), there can be multiple valid IRRs. In that case, use NPV at your hurdle rate or modified IRR (MIRR) instead.
IRR caveat
IRR implicitly assumes you reinvest distributions at the same IRR — often unrealistic. Private equity reports IRR alongside MOIC and TVPI for this reason.