Finance

IRR Calculator for Uneven Cash Flows

Estimate the internal rate of return for an initial investment followed by equal periodic cash inflows and a terminal value. The calculator uses 0 = −initial investment + Σ cash flow_t ÷ (1 + IRR)^t. It returns more than one result so you can check the main answer against a useful secondary measure. IRR is the rate that makes net present value approximately zero. Multiple sign changes can create multiple IRRs; compare NPV at a defensible required return.

Educational scenario only. Confirm rates, fees, taxes, contract terms, and eligibility with the relevant institution or adviser.

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Calculate and compare

Use the number box for precision or the slider for fast scenario testing.

Scenario results

Estimated IRR

12.06%

Binary-search solution for the entered cash-flow pattern.

NPV at required return

$8,157.86

Discounted at 10%.

Undiscounted net cash

$66,000

Simple cash total without time value.

How the calculation works

Use consistent units and retain full precision until the final display step.

0 = −initial investment + Σ cash flow_t ÷ (1 + IRR)^t
Initial investment100000 $
Annual cash flow18000 $
Number of years7 years
Terminal value40000 $
Required return10 %

Worked example

Reproduce the displayed scenario, then change one assumption at a time.

1
Start with the displayed scenario
These values remain visible and editable, so the example can be reproduced.
Initial investment: 100000 $; Annual cash flow: 18000 $
2
Apply the formula
Keep units consistent before substituting the inputs.
0 = −initial investment + Σ cash flow_t ÷ (1 + IRR)^t
3
Check Estimated IRR
Binary-search solution for the entered cash-flow pattern.
12.06%

Assumptions behind the result

  • Inputs use the units shown beside each control.
  • The displayed formula is applied without hidden market or demographic data.
  • Rounding occurs only for display; calculations keep full numeric precision.
  • IRR is the rate that makes net present value approximately zero.
  • Multiple sign changes can create multiple IRRs; compare NPV at a defensible required return.

Mistakes that change the answer

  • Mixing percentages with decimals or mixing incompatible units.
  • Relying on a rounded intermediate value instead of the full result.
  • Changing several assumptions at once instead of testing initial investment separately.

Questions about irr calculator for uneven cash flows

What does the irr calculator for uneven cash flows calculate?
Estimate the internal rate of return for an initial investment followed by equal periodic cash inflows and a terminal value.
Can I verify the result by hand?
Yes. Use 0 = −initial investment + Σ cash flow_t ÷ (1 + IRR)^t with the displayed inputs, then compare your answer with the first result card.
What is the main limitation?
Multiple sign changes can create multiple IRRs; compare NPV at a defensible required return.

What to calculate next

Calculator methods and editorial structure reviewed July 11, 2026. Results are estimates; verify regulated rates, eligibility rules, and professional decisions with the cited primary source.

Important: Educational Purposes OnlyThe calculators, estimates, and financial formulas provided on CalculatorVillage.com are for informational and educational purposes only. They are not intended as certified financial planning, tax, legal, or investment advice. Actual rates, terms, and returns will vary. Always consult with a qualified professional before making significant financial decisions.