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finance ToolUpdated 2026-09-20

IRR Calculator (Internal Rate of Return)

The Internal Rate of Return (IRR) is the annual discount rate at which the Net Present Value (NPV) of all future cash flows equals zero. Use this tool for commercial capital budgeting and investment analysis.

Frequently Asked Questions

How do you interpret IRR?

If the project IRR exceeds your cost of capital (hurdle rate), the project is projected to generate surplus economic value and is considered financially viable.