Finance
Internal Rate of Return
Discount rate making NPV zero (numerical).
Formula
Formula
0 = Σ CFt1 + IRR
Variables
| Symbol | Definition | Type & range | Units | Role |
|---|---|---|---|---|
| CFₜ | cash flows (year 0 first) | list of real numbers | — | input |
Try it yourself
Interactive calculator
Worked examples
Example 1
Givencash flows = -1000, 300, 400, 500, 600
Result24.88833566
Example 2
Givencash flows = -5000, 2000, 2000, 2000
Result9.70102574