Important limitation
A true IRR calculation uses dated cash flows and can produce multiple or unstable answers. This page gives a quick annualized approximation for simple scenarios.
Example
If 10,000 grows to 15,000 and also produces 500 per year for 5 years, total received is 17,500. The simplified annualized return is based on 17,500 / 10,000 over 5 years.
Common mistakes
Do not use this approximation when cash flows happen at irregular dates. For project finance, real estate or private investments, dated cash flows matter.
Limitations
This is not investment advice and not a full IRR solver. It does not handle multiple sign changes, reinvestment assumptions, taxes, fees or exact cash-flow timing.
Last reviewed: 2026-05-17