Internal Rate of Return Calculator

The internal rate of return calculator facilitates the tricky calculation of IRR, as the concept of IRR is widely used for evaluating investments. IRR is a technique of discounting cash flows for analyzing investment decisions. It is the discount rate at which the net present value of the project is’ 0 ‘, which means that the discounted future cash inflows of the project are equal to the total cash outflows of that project.

In order to calculate IRR, consider the following formula:

where a = lower rate of return

b = higher rate of return

NPVa =NPV at lower rate

& NPVb = NPV at higher rate.

Internal Rate of Return Calculator

How to Calculate using Calculator?

The user must provide the calculator with the following data to obtain immediate results.

Lower rate of return – The lower the rate of return, the higher the net present value.

Higher rate of return – Similarly, the higher the rate of return, the lower the net present value.

NPV at lower rate – It is the net present value calculated at the lower interest rate.

NPV at higher rate – It is the net present value that is calculated with a higher rate of return.

Sanjay Borad

Sanjay Bulaki Borad

MBA-Finance, CMA, CS, Insolvency Professional, B'Com

Sanjay Borad, Founder of eFinanceManagement, is a Management Consultant with 7 years of MNC experience and 11 years in Consultancy. He caters to clients with turnovers from 200 Million to 12,000 Million, including listed entities, and has vast industry experience in over 20 sectors. Additionally, he serves as a visiting faculty for Finance and Costing in MBA Colleges and CA, CMA Coaching Classes.

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