This tool calculates the Internal Rate of Return (IRR) for complex payment streams with various frequencies. It determines the discount rate that makes the net present value (NPV) of all cash flows equal to zero, providing the effective return rate of your investment.
Enter payment details in the Payment Inputs section. Each stream requires:
The tool displays the total number of payments for verification. Use Add New Payment Stream to create multiple cash flow series. For spot payments, only the start month matters as it represents a single payment at that time.
Enter the initial investment or present value in the Present Value Input section if you want to include it in the IRR calculation. Leave blank if your payment streams already include the initial investment as a negative cash flow.
Results automatically update as you enter data. The Results section shows:
Use the Payment Flow Chart to visually verify your cash flows. Positive bars represent inflows, negative bars represent outflows.
This IRR calculator is designed for professional financial analysis, supporting complex cash flow structures commonly found in investment analysis, project finance, and portfolio management. The multiple convention outputs ensure compatibility with different financial market standards.
The calculator internally processes all payment streams into monthly arrays and uses numerical methods to find the discount rate where NPV equals zero. This approach handles overlapping payment streams, different frequencies, and various start dates within a single IRR calculation, providing accurate results for sophisticated financial modeling scenarios.