How to use the IRR Calculator
Estimate irr based on fixed cash flow from initial investment, holding, ending balance with the IRR Calculator. It includes IRR based on fixed cash flow, IRR based on irregular cash flow workflows, so choose the one that matches the values you actually know. Use it as a planning baseline, then compare the estimate with current rates, fees, taxes, and provider terms.
Step by step
- For the IRR example, select IRR based on fixed cash flow and enter initial investment, holding, ending balance, cash flow timing, deposit withdraw. Keep each value in the unit displayed beside its field.
- Review the selected IRR workflow and inputs, then read irr based on fixed cash flow in the result panel.
- Change one IRR assumption at a time to compare scenarios. Use Reset to restore this tool's worked example values.
How the calculation works
Solves the discount rate that makes net present value zero for fixed or irregular cash flows.
Worked example
To reproduce the IRR worked example, reset the calculator. Select the IRR based on fixed cash flow workflow. Use initial investment $10,000; holding 5 years; ending balance $15,000; cash flow timing Beginning; deposit withdraw $1,000. The result is irr based on fixed cash flow of 18.76%. Cash-flow observations: 6. Review the displayed units before comparing the result.
Understanding the result
The IRR reports irr based on fixed cash flow. Use it as a planning baseline, then compare the estimate with current rates, fees, taxes, and provider terms. Planning estimate only. Rates, fees, taxes, eligibility rules, timing, and provider terms can change the result.
How to check the answer
Check the IRR result by entering the same initial investment, holding, ending balance in an independent statement, lender, provider, or official tool. Change one input and confirm that irr based on fixed cash flow moves in the direction implied by Solves the discount rate that makes net present value zero for fixed or irregular cash flows.
Common questions
What does the IRR calculate?
Estimate irr based on fixed cash flow from initial investment, holding, ending balance with the IRR Calculator.
Which inputs does the IRR example use?
The worked example uses initial investment, holding, ending balance, cash flow timing, deposit withdraw in the IRR based on fixed cash flow workflow. Other workflows can show different fields. Keep the chosen workflow and units with the result when comparing calculations.
Is the IRR result exact?
Planning estimate only. Rates, fees, taxes, eligibility rules, timing, and provider terms can change the result. Recheck initial investment, holding, ending balance and use irr based on fixed cash flow only for a decision where that level of precision is appropriate.