NPV & IRR Calculator
Calculate net present value, internal rate of return, payback period, and discounted payback period for investment decisions.
NPV & IRR Calculator
Analyze investment decisions with Net Present Value and Internal Rate of Return. Enter cash flows and discount rate to see full analysis.
๐ฐInvestment Details
Upfront cost โ entered as positive, treated as negative cash flow at t=0
Required rate of return or cost of capital (WACC). Typical range: 8โ15% for corporate projects.
๐ Projected Cash Flows
Enter positive values for inflows, negative for additional outflows. Max 10 years.
โ๏ธInvestment Decision
๐Key Metrics
๐Year-by-Year Cash Flow Table
| Year | Cash Flow | Discount Factor | Present Value | Cumulative NPV |
|---|---|---|---|---|
| Year 0 (Initial) | -$100,000 | 1.0000 | -$100,000 | -$100,000 |
| Year 1 | $30,000 | 0.9091 | $27,273 | -$72,727 |
| Year 2 | $35,000 | 0.8264 | $28,926 | -$43,802 |
| Year 3 | $40,000 | 0.7513 | $30,053 | -$13,749 |
| Year 4 | $45,000 | 0.6830 | $30,736 | $16,987 |
| Year 5 | $50,000 | 0.6209 | $31,046 | $48,033 |
| Total NPV | โ | โ | โ | $48,033 |
๐How NPV & IRR Work
Net Present Value (NPV)
NPV discounts all future cash flows to today's dollars using the required return rate, then subtracts the initial investment.
NPV > 0 means the investment earns more than the required rate. Accept projects with positive NPV.
Internal Rate of Return (IRR)
IRR is the discount rate that makes NPV = 0. Calculated here using Newton-Raphson iteration.
IRR > discount rate means the project beats your required return. Higher IRR = better return.