IRR Calculator
Calculate the Internal Rate of Return for any investment with multiple cash flows.
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IRR Results
Internal Rate of Return
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CAGR (for comparison)
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Total Cash Inflows
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NPV at Various Discount Rates
Cash Flow Details
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Frequently Asked Questions
- What is IRR?
- IRR (Internal Rate of Return) is the annualised rate that makes the Net Present Value of all cash flows zero. It gives you the effective compounded annual return of an investment, accounting for the timing and magnitude of all cash flows.
- What is the difference between IRR and CAGR?
- CAGR measures growth between a single start and end value. IRR handles multiple cash flows at different times, making it more accurate for investments with periodic income like rental properties, bonds or business ventures.
- What is a good IRR for real estate in India?
- An IRR above 12-15% is generally considered good for Indian real estate. Residential property total returns (rental yield + appreciation) typically range from 8-15%. Commercial real estate and REITs can offer better IRR.
- What is a good IRR for mutual funds?
- Indian equity mutual funds have historically delivered 12-15% IRR over 10+ year periods. Large-cap funds average 10-13%, while mid and small-cap funds can return 13-18%. The Nifty 50 index has averaged around 12% IRR over long periods.