IRR Calculator (Internal Rate of Return)

Inserisci i flussi di cassa del progetto

Scrivi i valori separati da virgola (es. -10000, 3000, 4000, 5000)



Inserisci i flussi e premi “Calcola IRR” per ottenere il rendimento interno.

IRR Calculator – Investment Profitability Assessment

The IRR Calculator (Internal Rate of Return) allows for a quick determination of the actual return on a project or investment based on the projected cash flows over time. It is an essential tool for financial analysis, business plans, and economic feasibility assessments.

How it Works

The user inputs a sequence of cash flows separated by commas, where:

  • The first value is usually negative (initial investment);
  • The subsequent values represent revenues or positive returns over time.

Example:
-10000, 3000, 4000, 5000
In this case, the calculator looks for the rate of return that makes the net present value (NPV = 0) of these cash flows equal to zero.

Calculation Method

The app uses an iterative algorithm Newton-Raphson, with automatic convergence and a tolerance of 1e-7, to find the IRR.
The result is expressed as percentage per period, where the period can be annual, monthly, or quarterly, selectable in the form.

Interpreting the Result

The result includes:

  • The calculated IRR, expressed as a percentage;
  • An interpretive message (positive, low, or negative) based on the return achieved;
  • If set, an automatic comparison with the minimum expected rate to highlight the feasibility of the project.

Indicatively:

  • IRR < 0% → Non-profitable project;
  • 0–5% → Limited or marginal return;
  • > 5% → Economically interesting project.

Additional Tools

The results are displayed in a dedicated container with the option for quick copy to clipboard, to facilitate the preparation of financial reports.
All texts are compatible with Polylang thanks to the ua__() function, allowing full multilingual management on your UtileApp site.

Notes and Limitations

The IRR calculation assumes that cash flows are equidistant over time and that reinvestment of profits occurs at the same rate.
For more complex analyses (irregular cash flows or multiple IRRs), it is advisable to supplement the result with the analysis of Net Present Value (NPV) and to compare the achieved return with the cost of capital or market rates.