---
title: "IRR Calculator — Internal Rate of Return | WorldCalculators"
description: "Calculate the internal rate of return (IRR) for any series of cash flows. Used for project appraisal in the US, UK, and internationally. Free, no ads."
url: "https://worldcalculators.org/calculators/irr/"
canonical: "https://worldcalculators.org/calculators/irr/"
---

# IRR Calculator

Calculate the internal rate of return (IRR) for any series of cash flows. Used for project appraisal in the US, UK, and internationally. Free, no ads.

## Quick answer

United States: IRR is widely used in private equity, venture capital, and corporate finance. Private equity funds typically target IRRs of 20%+ on individual investments. The OMB uses it alongside NPV for regulatory analysis.

## IRR in Practice: US vs UK Project Appraisal

United States: IRR is widely used in private equity, venture capital, and corporate finance. Private equity funds typically target IRRs of 20%+ on individual investments. The OMB uses it alongside NPV for regulatory analysis.
United Kingdom: The HM Treasury Green Book cautions against relying solely on IRR, preferring NPV. However, the Modified Internal Rate of Return (MIRR) is sometimes used to avoid IRR's reinvestment assumption issues.

## Frequently Asked Questions

The Internal Rate of Return (IRR) is the discount rate that makes the NPV of all cash flows equal to zero. It represents the project's effective compounded annual return. If IRR exceeds your required/hurdle rate, the project is worth pursuing.
Both the US and UK use IRR for capital budgeting, but apply different benchmarks. US companies typically compare IRR to their WACC. UK public sector projects are evaluated under HM Treasury's Green Book, which prefers NPV but accepts IRR as a complementary measure when comparing projects with different scales.

Source: https://worldcalculators.org/calculators/irr/
Markdown mirror of the HTML page. Prefer this URL for RAG; the interactive calculator still lives on the HTML page.