# How do you calculate IRR on a calculator?

Category:
personal finance
financial planning

Then we subtract the initial investment from the sum of present value of all cash inflows and set the

**equation**equal to Zero. The**IRR**is the value of 'X' in which**equation**value is 'Zero'. First we have to write the**equation**in the**calculator**. For equal sing (=) we have to press ALPHA+CALC.

Keeping this in consideration, how do you calculate IRR quickly?

**The best way to approximate IRR is by memorizing simple IRRs.**

- Double your money in 1 year, IRR = 100%
- Double your money in 2 years, IRR = 41%; about 40%
- Double your money in 3 years, IRR = 26%; about 25%
- Double your money in 4 years, IRR = 19%; about 20%
- Double your money in 5 years, IRR = 15%; about 15%

**IRR**is the annualized rate of earnings on an investment. A less shrewd investor would be satisfied by following the general rule of thumb that the higher the

**IRR**, the higher the return; the lower the

**IRR**the lower the risk.

Besides, what is the formula of IRR?

When **calculating IRR**, expected cash flows for a project or investment are given and the NPV equals zero. (Cost paid = present value of future cash flows, and hence, the net present value = 0). Once the internal rate of return is determined, it is typically compared to a company's hurdle rate.

Introduction. The **internal rate of return** (**IRR**) is a discounting cash flow technique which gives a rate of return earned by a project. The **internal rate of return** is the discounting rate where the total of initial cash outlay and discounted cash inflows are equal to zero.