Understanding the irr calculator
The internal rate of return is the discount rate at which an investment's cash flows exactly break even the rate that makes the present value of everything you receive equal what you put in. It condenses an uneven stream of cash flows into a single annualized percentage you can compare against other opportunities or a required hurdle rate.
IRR is powerful but has quirks: it assumes interim cash flows are reinvested at the IRR itself, and unusual cash-flow patterns can produce multiple or no solutions. For straightforward projects an upfront cost followed by inflows it's an excellent yardstick. If the IRR clears your cost of capital, the project adds value; if it doesn't, the money is better deployed elsewhere.
Results are estimates for education only and are not financial advice.