Calculating rate of return with cash flows
IRR is an annualized rate-of-return. It is known as an "internal" rate-of-return because the algorithm used does not depend on a quoted interest rate (if there is one). To calculate an IRR, one only needs to know the projected cash flow amounts and dates they are due to occur. This calculator will help you to determine the average annual rate of return on an investment having uneven cash flows that occur regularly. You can choose from Annual, Semi-Annual, Quarterly, or Monthly cash flow intervals, as well as set the date of the beginning period. Use this calculator to calculate the internal rate of return (IRR) and measure the profitability of an investment. Simply enter your initial investment figure and yearly cash flow figures. You can add and remove years as you require.