NPV and IRR Calculator
Evaluate a project or investment from its cash flows. Enter the upfront outlay and each period's inflow, set a discount rate, and see the net present value and the internal rate of return.
How to use the NPV and IRR calculator
- Enter your year 0 amount as the initial investment (usually negative).
- Add a row for each later year with that period's cash flow.
- Set a discount rate to read the NPV, and check the IRR below it.
Examples
A $1,000 project returning $500 a year for three years
Cash flows -1000, 500, 500, 500; discount rate 10%
NPV $243.43, IRR 23.38%
Frequently asked questions
What is net present value (NPV)?
NPV is the sum of every cash flow discounted back to today. Each future amount is divided by (1 + rate) raised to the period number, then added up. A positive NPV means the cash flows are worth more than the upfront cost at your chosen rate.
What is the difference between NPV and IRR?
NPV gives a dollar figure at a discount rate you pick, so it depends on that rate. IRR is the single rate that makes NPV equal zero, expressed as a percentage. Use NPV to size value created and IRR to compare a project's return against your required rate.
How should I read the result?
Accept a project when NPV is above zero at your required rate, which is the same as the IRR being higher than that rate. Reject it when NPV is negative or the IRR falls below your hurdle rate.
Why do I sometimes get no IRR?
IRR only exists when the cash flows change sign, meaning money goes out and later comes back. If every amount is negative or every amount is positive there is no break-even rate, so the calculator reports that no IRR was found.
Does this calculator store my numbers?
No. Everything runs in your browser. The cash flows and rate you type are never sent to a server or saved.
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