IRR Calculator: Estimate Internal Rate of Return in India
Calculate the Internal Rate of Return (IRR) for your investment cash flows. Perfect for investors, financial analysts, and students in India.
Your IRR Calculation Result
Internal Rate of Return (%)
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Net Present Value at IRR (₹)
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Calculation Steps
Steps will appear here after calculation.
IRR Calculation Tips
Ensure initial investment is negative.
Verify cash flows for accuracy.
Use IRR to compare investment options.
More Tools to Explore:
Your Guide to IRR Calculations in India
What’s an IRR Calculator?
This tool calculates the Internal Rate of Return (IRR) for a series of cash flows, helping you evaluate investment profitability. Ideal for investors and students in India.
How IRR Is Calculated
Method used:
IRR Definition:
IRR is the discount rate where NPV = 0: Σ [CF_t / (1 + IRR)^t] = 0
Calculation:
Uses Newton-Raphson method to iteratively find IRR.
Where CF_t = Cash Flow at time t, t = Year, NPV = Net Present Value
Our calculator provides accurate results with clear steps!
Understanding Your Results
Your results include:
| Component | Description |
|---|---|
| Internal Rate of Return | Annualized return rate (%). |
| Net Present Value at IRR | NPV at calculated IRR (₹, should be ~0). |
Why Use an IRR Calculator?
Evaluate investments effectively:
Investment Analysis
Assess project profitability.
Compare Options
Rank investment opportunities.
Learn Finance
Understand IRR concepts.
Key Considerations for IRR Calculations
Ensure meaningful results:
IRR is an estimate via iteration. Complex cash flows may have multiple or no IRR.
Needs at least one negative (investment) and one positive cash flow. Irregular flows may affect accuracy.
Compare IRR to cost of capital or other investments, not as a standalone metric.
Frequently Asked Questions About IRR
Questions about calculating Internal Rate of Return in India? Here are answers to guide your investment analysis:
It calculates the Internal Rate of Return, the rate where the NPV of cash flows equals zero, to evaluate investments.
IRR is found iteratively (Newton-Raphson method) to solve Σ [CF_t / (1 + IRR)^t] = 0.
Enter a negative initial investment (e.g., -₹100000) and subsequent cash flows (positive or negative, e.g., ₹50000).
Yes! Ideal for finance or economics students learning investment analysis.
Yes! All calculations are done locally in your browser, with no data stored.