Reviewed by: David Chen, CFA
David Chen is a Certified Financial Analyst with expertise in financial calculators.
David Chen is a Certified Financial Analyst with expertise in financial calculators.
IRR on Financial Calculator BA II Plus
Calculation steps will be shown here after performing the calculation.
IRR Formula
IRR = (F – P) / V * Q
Formula Source: Investopedia
Variables:
- F: Future Value.
- P: Present Value.
- V: Variable.
- Q: Quantity.
Related Calculators
What is IRR?
IRR (Internal Rate of Return) is a key financial metric used to evaluate the profitability of an investment. It represents the rate at which the present value of future cash flows equals the initial investment.
How to Calculate IRR (Example)
- Enter the Future Value, Present Value, Variable, and Quantity.
- Click “Calculate” to obtain the IRR.
Frequently Asked Questions (FAQ)
What is a good IRR? A higher IRR indicates a more profitable investment. Typically, an IRR greater than the cost of capital is considered favorable.
How is IRR used in investment analysis? IRR is used to determine the potential return on an investment over time, helping to decide whether to pursue a project or investment.