Growth & returns
An IRR calculator for investments that pay along the way
An IRR calculator: clients enter an initial investment, annual cash flow, years and a final sale value, and see the internal rate of return, total cash received and the cash multiple.
Included on every plan, even the free Practitioner plan. No card needed.
What is internal rate of return?
IRR is the annual discount rate at which the present value of all cash flows, including the initial investment and any final sale value, equals zero. It's the investment's effective annual return when money comes in over time. Comparing IRR with a required return or a loan rate shows whether an investment clears the bar.
When a deal or property is on the table
Business owners evaluating equipment, investors weighing a rental or a private placement, and clients offered a stake in a friend's business all face the same question: what return does this really produce? IRR is the language sponsors use, and clients want to check the claim.
What the client types into a search box
“what is the return on this investment with cash flow and sale”
How a client works through it
Enter the initial investment
The amount paid at the start.
Enter annual cash flow
The equal amount received each year.
Enter years and final value
How long it's held and the sale value at the end.
See IRR and multiple
IRR, total cash received, net profit and cash multiple.
What lands in your inbox
When a client asks your firm to review the result, the request arrives as a contact record with their inputs and results attached, by email and, on paid plans, by webhook to your CRM.
Received
Investment size, annual cash flow, years and sale value show the deal economics. A high IRR driven mainly by the sale value signals dependence on the exit; a large investment may be a client considering concentrated private risk.
IRR versus cash multiple
Internal Rate of Return is the annualized return accounting for when cash arrives. Cash Multiple is total cash received divided by the investment, ignoring timing. Net Profit is the dollar gain.
A high multiple over a long time can mean a modest IRR; a high IRR over a short time can mean little total profit. Clients should look at both.
Results shown: Internal Rate of Return · Total Cash Received · Net Profit · Cash Multiple.
Who uses IRR on a firm's website?
Fractional CFOs and CPA firms use it to evaluate capital projects with owners. Advisers use it to help clients assess private deals and real estate, where sponsors often quote optimistic IRRs.
The request shows the deal's shape: how much in, how much back each year, and the exit assumption, which is usually where the risk hides.
Follow-ups this request opens
- Stress-test the exit value and timing
- Model taxes on cash flows and the sale
- Compare the deal with the client's other options
- Review due diligence on a private investment
What this calculator leaves out
- Assumes equal annual cash flows at year-end.
- Irregular cash flows are not supported.
- Taxes and financing are not modeled.
- IRR assumes reinvestment at the IRR, which can overstate attractive deals.
Platform disclaimer shown under the calculator: Estimates only. Assumes equal cash flows received at the end of each year plus an optional final value; irregular cash flows and taxes are not modeled.
Compliance note for firms
Presenting IRRs of specific offerings can be performance advertising or a recommendation; advisers and broker-dealers have rules for both. As a client-run tool on the client's own figures, keep it neutral and avoid pairing it with a specific product.
Not legal advice. See our disclaimer and the guide to compliance for client calculators.
Terms your client sees in the calculator
These definitions appear in the calculator's collapsible Definitions block, so clients don't have to call to ask what a label means.
- Internal rate of return (IRR)
- The annual discount rate at which the present value of all cash received equals the initial investment, so net present value is zero. It expresses an investment’s return as a single yearly percentage that accounts for timing. This calculator finds it by trial, narrowing the rate until NPV reaches zero.
- Net present value (NPV)
- The value today of all future cash flows, discounted at a chosen rate, minus the initial investment. A positive NPV means the investment beats that rate; a negative NPV means it falls short. IRR is simply the rate at which NPV equals zero, so the two measures always agree on whether a project clears a given hurdle rate.
- Initial investment
- The amount paid up front, treated as a cash outflow today (time zero). Every later cash flow is compared against it. Including all up-front costs, such as fees or closing costs, gives a more accurate IRR; leaving them out overstates the return.
- Annual cash flow
- The cash the investment returns at the end of each year, such as net rent, dividends or distributions. This calculator assumes the same amount every year, received at year-end. Irregular or growing cash flows, or cash received monthly, would produce a different IRR.
- Final (sale) value
- A lump sum received at the end of the last year in addition to that year’s cash flow, such as sale proceeds or the return of principal. Because it arrives last, it is discounted the most, yet it often drives most of the IRR for real estate and other assets held for appreciation.
- Cash multiple
- Total cash received divided by the initial investment, also called the equity multiple or MOIC. A 1.5x multiple means you got back $1.50 for each $1 invested. Unlike IRR, it ignores timing: 1.5x over 3 years and over 15 years look the same, which is why the two are read together.
In our glossary: Internal rate of return · Present value
Internal Rate of Return (IRR) calculator: questions from firms and clients
What's a good IRR?
One that exceeds the return you require for the risk and the alternatives available.
How is IRR different from rate of return?
IRR handles cash flows during the holding period; simple annualized return only uses start and end values.
Can it handle uneven cash flows?
No, this version uses equal annual cash flows.
Does it include taxes?
No. After-tax IRR can be much lower.
What is the cash multiple?
Total cash received divided by the investment.
Is IRR reliable for private deals?
It depends entirely on the assumptions, especially the exit value.
Can business owners use it for equipment?
Yes, with cash savings as the annual flow and resale as the final value.
Which plan includes it?
Every plan, including the free Practitioner plan, which runs up to 5 calculators at once alongside the other investment tools. Firm (up to 50) and Network (no cap) add webhooks and white-label. See pricing.
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Clients who ask this usually ask next
Annual Rate of Return
what was my average annual return
Present Value
how much do I need to invest now to have 50000 in 10 years
Business ROI
is this investment worth it for my business
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