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Team Cocco Financial Planning

Internal Rate of Return (IRR)

Calculate the IRR for any series of cash flows โ€” investments, projects, or policies

๐Ÿ’ฐ Cash Flows

Enter cash flows by period. Negative = money out (investment). Positive = money received (return).

Period
Cash Flow ($)
Internal Rate of Return
0%
Total Invested
$0
Total Received
$0
Net Profit
$0

๐Ÿ“Š Cash Flow Timeline

๐Ÿ“ˆ NPV vs Discount Rate

Definition: IRR is the discount rate that makes the Net Present Value (NPV) equal to zero.
Formula: 0 = ฮฃ [CFโ‚œ / (1 + IRR)แต—] for t = 0 to N
Method: Newton-Raphson iterative solver with bisection fallback for robustness.