IRR Calculator
Make investment decisions like a Wall Street professional. Calculate the true profitability of complex investments with Internal Rate of Return analysis.
🎯 Free IRR Calculator
Enter your investment cash flows to calculate Internal Rate of Return. This professional-grade tool helps evaluate real estate deals, business opportunities, and complex investment projects.
Master Professional Investment Analysis
IRR reveals the true profitability of investments with uneven cash flows and complex timing scenarios
🏢 Real Estate Investment
IRR is essential for evaluating rental properties, fix-and-flip projects, and commercial real estate deals where cash flows vary significantly over time.
- Rental property cash flow analysis
- Fix-and-flip project evaluation
- Commercial real estate deals
- REIT and syndication comparison
💼 Business Opportunity Analysis
Evaluate startup investments, business acquisitions, and capital projects where initial costs and future returns occur at different times and amounts.
- Startup investment evaluation
- Business acquisition analysis
- Capital equipment decisions
- Private equity opportunities
📊 Portfolio Performance
Measure the true performance of investments with irregular contributions and withdrawals, giving you accurate return metrics for comparison.
- Investment portfolio analysis
- Fund performance evaluation
- Dollar-weighted returns
- Manager performance review
⚖️ IRR vs Other Metrics
Understand when to use IRR versus ROI, NPV, or simple returns. Each metric tells a different story about investment profitability and risk.
- IRR vs ROI comparison
- Net Present Value relationship
- Time-weighted vs money-weighted returns
- Risk-adjusted performance metrics
🚀 Professional IRR Analysis
Advanced strategies for accurate investment evaluation and sophisticated financial decision-making
Set Realistic Hurdle Rates
Compare IRR to your required return rate (hurdle rate). Consider risk level, opportunity cost, and market conditions when setting your minimum acceptable return.
Include All Cash Flows
Account for taxes, fees, maintenance costs, and opportunity costs. Missing cash flows can dramatically skew IRR calculations and lead to poor decisions.
Beware of Multiple IRRs
Projects with alternating positive and negative cash flows may have multiple IRR solutions. Use NPV analysis as a backup for complex scenarios.
Consider Reinvestment Assumptions
IRR assumes you can reinvest cash flows at the IRR rate. For high IRRs, this may be unrealistic. Consider Modified IRR (MIRR) for more conservative analysis.
Use Sensitivity Analysis
Test different scenarios by varying key assumptions. Calculate IRR for best-case, worst-case, and most-likely scenarios to understand risk ranges.
Compare Similar Investment Types
IRR works best when comparing investments with similar risk profiles and time horizons. Don’t compare a rental property IRR to stock market returns without risk adjustment.