How to Find the IRR on a Financial Calculator
- 1). Enter the initial deposit or investment into the calculator. For example if you are investing $20,000, enter it into the category labeled initial deposit amount. The date you invested the money should be keyed into the "start date" category. The end date should also be entered. If your investment will be for a period of one year, enter a date one year from your start date.
- 2). Find out the future value of your investment. Enter $25,000 for this example. Decide if there will be periodic deposits or withdrawals and enter the amount. Choose the frequency of your deposits from the drop-down box at the left.
- 3). Decide if your deposits or withdrawals will be irregular amounts. Click on the bar designated "Click here to Input irregular payments and withdrawals". Enter the date and dollar amount of your irregular transactions then click the "OK" button.
- 4). Review the terms and then calculate the IRR. The initial deposit will be $20,000; the start date will be July 21, 2010, and the end date will be July 21, 2011; the future value will be designated as $25,000; monthly periodic deposits will be $250; hit the calculate button. The IRR will be 9.338 percent. The future value of the periodic deposits ($250 x 12 = $3,000), will be $3,127.09 as July 21, 2011.
