An IRR Calculator is a financial tool that automatically computes the Internal Rate of Return—the annualized rate at which an investment grows, accounting for all cash flows and their timing. Instead of spending hours on complex calculations, you simply enter your investment data and get instant results.
Internal Rate of Return (IRR) is the discount rate that makes the net present value of all cash flows equal to zero. It's expressed as a percentage and shows the true annualized return on your investment.
IRR differs from simple return calculations because it: