IRR Calculator

IRR is annualized and accounts for timing. ROI is total return. On a 2-year investment, IRR tells you equivalent annual return; useful for comparing to other opportunities.

Yes, if cash flows change signs multiple times (e.g., invest, payback, then invest again). Use NPV and hurdle rate to break ties; IRR alone is ambiguous.

Your cost of capital. Typical 10–15% for equity investments, 5–8% for real estate, 2–3% for bonds. If IRR > hurdle, project is accretive.