ClarityHow to use this tool
- Enter cash flows, initial outflow first.
- Select Calculate to view the result.
- Check the method and assumptions below before using the result.
Input reference and sample values
Use the units and choices shown for each field. Sample values are provided for practice, not as recommendations.
| Input | Format and units | Sample |
|---|---|---|
| Cash flows, initial outflow first | Keep the structure and separators shown in the sample. Line breaks are retained in this input. | -1000, 400, 400, 400 |
Result for these sample inputs
9.70102574 %
- NPV at this rate
- -5.68434189e-14
Return per cash-flow interval. It is annual only when your flows are one year apart.
Select Try the example in the form to load these values and calculate them again. This replaces the current form inputs. Compare the result with the method and worked explanation below.
The method, explained
IRR is the rate that makes NPV equal to zero. Bisection searches from −99.9% to 1,000% per period. A single initial outflow followed by nonnegative inflows gives the supported conventional cash-flow pattern.
Using cash flows, initial outflow first = -1000, 400, 400, 400, the result is 9.70102574 %. Change these example inputs to match your task; use the method above to check each step.
What to keep in mind
Uneven dates and later outflows are not supported. This restriction avoids presenting one arbitrary root for cash flows with multiple possible IRRs. A scenario calculation using your inputs, before unlisted fees or taxes. It is not a quoted product rate or personalized recommendation.
Methodology maintained by ClarityKit. How these tools are built and checked.