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IRR Calculator

Use this IRR calculator to model growth, return, or time-value scenarios for IRR. The page returns IRR per period plus supporting values for effective annualized IRR, NPV at IRR, and solver iterations; check.

Primary answer
IRR per period
Inputs to verify
Cash flows and Periods per year
Use type
Use as a review-only estimate; verify before relying on it.
Keyword intent
IRR calculator

Calculator

IRR Calculator

Calculates irr per period from cash flows, periods per year. Defaults are filled in so you can review a working example before changing inputs.

amounts

Enter equal-period cash flows, with the first value at period 0. Use negative numbers for outflows.

periods/year

Use 1 for annual cash flows, 4 for quarterly cash flows, or 12 for monthly cash flows.

Result

Result reflects the current submitted inputs.

  • Risk C
  • Reviewed 2026-05-26
  • 3 sources
IRR per period16.34056%
Effective annualized IRR16.34056%
NPV at IRR0 currency units
Solver iterations40
Cash flow count4

Breakdown

Cash flow count
4
Solver iterations
40
NPV residual
0 currency units
  • Cash flows occur at equal intervals, and the first cash flow is at period 0.
  • Cash flows must contain at least one positive and one negative amount.
  • Only conventional cash flows with exactly one sign change are accepted to avoid multiple-IRR ambiguity.
  • The annualized output is an effective annualized rate based on the user-entered periods per year.
  • Taxes, fees, inflation, risk, reinvestment assumptions, project scale, and investment suitability are excluded.
  • This is an educational calculation, not financial advice, investment advice, or a recommendation.

Accuracy notes

Risk level
C
Reviewed
2026-05-26
Sources
3
Primary result
IRR per period

Formula logic is kept in a pure calculator module with fixtures, source notes, and page-visible assumptions.

High-risk estimate

Educational estimate, not advice

This finance calculator is for educational estimates only. It is not financial advice, a lender quote, investment advice, tax advice, legal advice, or a substitute for reviewing actual contracts, disclosures, rates, fees, and local rules.

Check the reviewed sources, assumptions, and formula limits before using this result for a financial, health, or safety decision.

Review cadence: 12 months; next review due 2027-05-26.

Categories

What the result means

IRR per period is the number to carry forward from this IRR calculation. Periodic rate that makes the net present value approximately zero. Read the projected value or rate first, then use contribution, period, and return outputs to explain why it changed. Use effective annualized IRR, NPV at IRR, and solver iterations to explain why IRR per period moved when an input changed. Change one assumption at a time so you can see which input is driving the projection.

IRR per periodPeriodic rate that makes the net present value approximately zero.
Effective annualized IRRPeriodic IRR converted with (1 + periodic rate) raised to the selected periods per year.
NPV at IRRSolver residual after convergence.
Solver iterationsNumber of bisection iterations used.

Use the result this way

  1. Start with IRR per period, then use supporting outputs only to explain the primary answer.
  2. Verify cash flows and periods per year before copying the result.
  3. Keep units consistent with the labels shown in the form, check separators in pasted text so every value is parsed as intended, and stay within the documented minimum and maximum ranges.
  4. Change one assumption at a time so you can see which input is driving the projection.

User job

How to use this calculator

Use IRR Calculator when you need irr per period, then use effective annualized irr and npv at irr to check the context for planning conversations, quote comparisons, payment checks, and scenario review.

Best for

  • Comparing one financial scenario with another
  • Preparing questions for a lender, advisor, or statement review
  • Reviewing a default example before entering your own cash flows and periods per year.

Check before relying

  • Verify rates, fees, timing, taxes, and local rules against official documents before acting.
  • Cash flows occur at equal intervals, and the first cash flow is at period 0.
  • Cash flows must contain at least one positive and one negative amount.
  • Source context: OpenStax, reviewed 2026-05-26.

Next useful step

  • Annuity Payout CalculatorUse next when the investment task needs payout per period instead of IRR per period.
  • Annuity CalculatorUse next when the investment task needs future value instead of IRR per period.
  • Bond CalculatorUse next when the investment task needs price from yield instead of IRR per period.

Limits of this estimate

  • Supports conventional equal-period IRR math only; it excludes multiple-IRR cases, reinvestment assumptions, tax, fees, project scale, risk, capital rationing, and investment recommendations.
  • The result depends on user-entered inputs and the documented assumptions; defaults are examples only.
  • Search indexing approval does not downgrade this page from risk level C or turn the result into professional advice.

Formula

IRR solves sum(C_t / (1 + r)^t) = 0 for r > -1 using bisection after requiring conventional cash flows with one sign change. Key assumptions: Cash flows occur at equal intervals, and the first cash flow is at period 0. Cash flows must contain at least one positive and one negative amount. Only conventional cash flows with exactly one sign change are accepted to avoid multiple-IRR ambiguity.

  • IRR solves sum(C_t / (1 + r)^t) = 0 for r > -1 using bisection after requiring conventional cash flows with one sign change.
  • Cash flows occur at equal intervals, and the first cash flow is at period 0.
  • Cash flows must contain at least one positive and one negative amount.
  • Primary source context: OpenStax.

Inputs

Enter cash flows and periods per year for planning conversations, scenario checks, and lender or statement comparison. Before calculating, keep units consistent with the labels shown in the form, check separators in pasted text so every value is parsed as intended, and stay within the documented minimum and maximum ranges. Cash flows: Enter equal-period cash flows, with the first value at period 0. Use negative numbers for outflows. Periods per year: Use 1 for annual cash flows, 4 for quarterly cash flows, or 12 for monthly cash flows.

Cash flowsEnter equal-period cash flows, with the first value at period 0. Use negative numbers for outflows.
Periods per yearUse 1 for annual cash flows, 4 for quarterly cash flows, or 12 for monthly cash flows.

Example

Using the default inputs, IRR Calculator returns IRR per period of 16.34056%. Adjust cash flows and periods per year to match your own scenario.

FAQ

How is IRR per period calculated here?

IRR solves sum(C_t / (1 + r)^t) = 0 for r > -1 using bisection after requiring conventional cash flows with one sign change. The first assumption to check is: Cash flows occur at equal intervals, and the first cash flow is at period 0.

What does IRR per period mean for IRR?

Read the projected value or rate first, then use contribution, period, and return outputs to explain why it changed. Secondary values such as effective annualized IRR, NPV at IRR, and solver iterations are there to explain the primary answer, not to replace it.

What should I enter for Cash flows?

Enter equal-period cash flows, with the first value at period 0. Use negative numbers for outflows. Use amounts for this field. Keep units consistent with the labels shown in the form, check separators in pasted text so every value is parsed as intended, and stay within the documented minimum and maximum ranges.

How does Periods per year change IRR per period?

Use 1 for annual cash flows, 4 for quarterly cash flows, or 12 for monthly cash flows. Changing it can alter IRR per period because the formula uses the submitted inputs together. Also compare nominal versus effective rate, contribution timing, compounding frequency, inflation, fees, and tax treatment.

Why does the IRR example show 16.34056% for IRR per period?

The default inputs produce 16.34056% for IRR per period. Treat that as a format and scale check, then replace every default value with your own inputs.

Can the IRR result replace financial advice?

No. Use the IRR result as comparison context only. Market returns, taxes, fees, legal terms, and personal constraints can change the real outcome.

Sources

Last reviewed: 2026-05-26

  • academicReviewed 2026-05-26 · Source Undated page, accessed 2026-05-26
    Principles of Finance: 16.3 Internal Rate of Return (IRR) MethodOpenStax. IRR definition as the discount rate that sets NPV to zero; requirement to disclose multiple-root limitations for non-conventional cash flows.
    Scope
    Open finance textbook discussion of IRR, NPV equals zero, iterative calculation, and multiple-IRR limitations.
    Supports
    IRR definition as the discount rate that sets NPV to zero; requirement to disclose multiple-root limitations for non-conventional cash flows.
    Limits
    Supports conventional equal-period IRR math only; it excludes multiple-IRR cases, reinvestment assumptions, tax, fees, project scale, risk, capital rationing, and investment recommendations.
  • academicReviewed 2026-05-26 · Source Undated page, accessed 2026-05-26
    Principles of Finance: 16.2 Net Present Value (NPV) MethodOpenStax. NPV formula structure used by the IRR solver.
    Scope
    Open finance textbook explanation of discounting cash flows to present value.
    Supports
    NPV formula structure used by the IRR solver.
    Limits
    Supports conventional equal-period IRR math only; it excludes multiple-IRR cases, reinvestment assumptions, tax, fees, project scale, risk, capital rationing, and investment recommendations.
  • reputableReviewed 2026-05-26 · Source Undated page, accessed 2026-05-26
    IRR functionMicrosoft Support. Equal-period cash-flow assumption and iterative solver behavior.
    Scope
    Spreadsheet function documentation for equal-period IRR and iterative calculation.
    Supports
    Equal-period cash-flow assumption and iterative solver behavior.
    Limits
    Supports conventional equal-period IRR math only; it excludes multiple-IRR cases, reinvestment assumptions, tax, fees, project scale, risk, capital rationing, and investment recommendations.

Disclaimer

This finance calculator is for educational estimates only. It is not financial advice, a lender quote, investment advice, tax advice, legal advice, or a substitute for reviewing actual contracts, disclosures, rates, fees, and local rules.