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IRR Calculator India 2026 – Internal Rate of Return

Use this free IRR Calculator in India to find the exact rate of return that makes any investment break even — the essential metric for capital budgeting decisions.

Calculate the IRR of an investment — the discount rate that makes NPV equal to zero.

Initial Investment ($)

Hurdle Rate / Required Return (%)

Enter annual cash flows:

Year 1 ($)

Year 2 ($)

Year 3 ($)

Year 4 ($)

Year 5 ($)

Year 6 ($)

Year 7 ($)

Year 8 ($)

Currency

Internal Rate of Return (IRR)

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Hurdle Rate

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Spread (IRR−Hurdle)

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Total Cash Flows

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What is Internal Rate of Return (IRR)?

IRR is the discount rate at which an investment's NPV equals zero. It represents the annualized rate of return an investment generates. If IRR exceeds the hurdle rate (required return or cost of capital), the project should be accepted.

Formula Used

Solve for r where: NPV = -CF0 + CF1/(1+r) + CF2/(1+r)^2 + ... = 0 (Calculated iteratively using Newton-Raphson method)

Example Calculation

Example — US — $100K investment, cash flows $25K-$45K over 5 years

IRR ≈ 21.8% | Hurdle = 10% → Strong accept — 11.8% spread

Example — India — ₹50L investment, ₹10-15L returns over 6 years

IRR ≈ 14.5% | WACC = 12% → Positive spread → Accept project

Example — United Kingdom

£80,000 investment, cash flows £18K, £22K, £25K, £28K, £30K over 5 years. IRR: 18.4% | Hurdle rate: 10% | Spread: +8.4% → Accept project | NPV at 10%: +£31,200

Why Use This Calculator?

IRR is widely used in private equity, venture capital, and corporate finance. It lets you compare investment returns on a percentage basis regardless of size. A project with IRR of 25% sounds appealing, but only if your cost of capital is below 25%.

What is a good IRR?▾

Depends on industry and risk. PE firms typically target 20%+. Real estate: 10–15%. Stock market: 10% long-term average. Corporate projects: usually > WACC (8–12%).

IRR vs MIRR — which is better?▾

Modified IRR (MIRR) is more conservative — it assumes reinvestment at the cost of capital rather than at IRR itself. MIRR is considered more realistic for most projects.

What happens if there are multiple IRRs?▾

Non-conventional cash flows (sign changes) can produce multiple IRRs. In such cases, NPV is a more reliable decision metric.

💡 Tip: IRR above 20% is typically considered excellent for non-leveraged investments. Private equity targets 20–30%+ due to higher risk.