IRR Calculator

About IRR

The IRR Calculator helps you estimate the internal rate of return of your investment. It considers your initial investment, regular contributions, achieved future value, and time horizon to compute the annualized return rate.

How It’s Calculated

The IRR is the rate r that satisfies the future value equation: FV = PV(1 + r/n)^(nt) + PMT × [((1 + r/n)^(nt) - 1) / (r/n)], solved numerically for r using bisection method.

Key Insights

• •Time is your greatest ally - even small regular contributions can grow significantly over decades
• •Compound interest allows your returns to generate their own returns, accelerating growth
• •Regular contributions often matter more than timing the market perfectly
• •Higher compounding frequency leads to slightly better returns due to interest-on-interest effects