IRR & Capital Budgeting Tool
Compute project Internal Rate of Return (IRR), Net Present Value (NPV), and Profitability Index using high-precision numerical cash flow modeling.
Investment Outlay & Hurdle RateStep 1 of 2
Annual Cash Inflows (Years 1 to 5)
When evaluating capital allocation, prioritize projects with both a positive NPV and an IRR that comfortably exceeds your weighted average cost of capital (WACC).
Internal Rate of Return (IRR) & NPV Mathematics
IRR is solved numerically using the Newton-Raphson polynomial iteration algorithm because there is no closed-form algebraic formula for polynomials of degree greater than four.
1. The Fundamental IRR Equation
2. Profitability Index Formula
Frequently Asked Questions
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