In other words, it can also be described as a discount rate you obtain. It can affect the cash inflows and outflows and in some cases make them equal to the value of zero. Therefore, an IRR calculator can help you determine the feasibility and profitability of an investment beforehand.
The Importance of Calculating IRR
When it comes to investment, calculating IRR helps you make a safer and profitable decision. It gives a clear and nearly accurate picture of the efficiency and yield of a particular project.
IRR is a highly used value in terms of major investment such as real estate. So, if you too are buying a property, our IRR calculator will help you evaluate your chances. One thing, however, you must know is that IRR is beneficial only if it is higher than your capital. If not, then you must find another place to invest your money or wait for the right time to make that investment.
Does IRR Calculator Really Work?
Our IRR calculator is currently one of our most used tools. A large number of people are using this tool to support and optimize their decision. Now, this is not the only reason you should use it. Our IRR calculator offers more benefits than you can expect from a free to use tool. The very first of them is the ease of use.
IRR calculator can be easily used by anyone regardless of their experience in investment and financial calculations. All you need is to input simple values including start and end date of the project, your initial deposit amount, future value, periodic withdrawals and frequency of deposits. Simply input all these values and you will get an accurate IRR within a matter of moments.
With our free to use financial tools such as the IRR calculator, we wish to encourage profitable investment. Take a look at our complete list of investment calculators on our calculators section.