Work out locally the internal rate of return (IRR) of an investment from initial outlay, annual cash flow and term - no upload.
No. Everything runs in your browser - your file never leaves your device. How this is verifiable
The internal rate of return (IRR) is the return an investment earns by itself. More precisely, it is the discount rate at which the investment's net present value is exactly zero. If the internal rate of return exceeds your hurdle rate (the required minimum return) the investment is worthwhile - equivalent to the NPV at the hurdle rate being positive. This calculator finds the internal rate of return from the initial investment, a constant annual cash flow and the term.
The calculation runs entirely locally in your browser, in pure JavaScript - nothing is uploaded and nothing is stored. The internal rate of return is found by bisection: the rate is adjusted until the net present value is zero. For comparison the calculator also shows the NPV at your hurdle rate and the total cash inflows. This calculator assumes a constant annual cash flow. Change an input and everything updates instantly.
An honest note: this is a model with a constant annual cash flow. The internal rate of return has known pitfalls - with sign changes in the payments there can be several solutions, and it favours small high-return projects over large ones with more absolute value. That is why the NPV is regarded as the more reliable decision rule; use both together. For the pure value figure use the NPV calculator. Amounts in euros as an example - the maths applies to any currency. Not investment advice.
| Input formats | Form inputs (no file) |
|---|---|
| Processing | Locally in your browser (JavaScript) |
| File upload | None |
Limitations: A model with a constant annual cash flow. The internal rate of return can be ambiguous with sign changes and favours small projects - the NPV is the more reliable decision rule, so use both. For the value figure use the NPV calculator. Amounts in euros as an example - the maths applies to any currency. Not investment advice.
No. The calculation runs entirely locally in the browser (pure JavaScript); nothing is sent or stored.
The return the investment earns by itself - the rate at which its net present value is exactly zero. If it is above your hurdle rate, the investment is worthwhile. Worked example: a 10,000 euro investment returning 2,500 euros a year for 5 years reaches an internal rate of return of about 7.9 percent - above a hurdle rate of around 6 percent, so worthwhile.
The NPV is regarded as more reliable because the internal rate of return can be ambiguous with sign changes and favours small projects. Use both together.
By bisection: the rate is adjusted step by step until the net present value reaches zero. With constant cash flows there is exactly one solution.