NPV & IRR Calculator
Calculate net present value, internal rate of return and payback period from an investment and its cash flows.
Positive NPV — the project earns more than your 10% required return.
NPV discounts each period's cash flow; IRR is the rate where NPV = 0. Educational estimate — not investment advice.
What Is the NPV & IRR Calculator?
The NPV & IRR Calculator evaluates an investment from its cash flows. Enter the initial investment, a series of future cash flows (one per line) and your discount rate, and it computes the net present value (NPV), the internal rate of return (IRR, the rate where NPV = 0, solved numerically) and the payback period — the core tools of discounted-cash-flow analysis.
How It Works
Enter the initial investment, the discount (required return) rate, and each period's cash flow on its own line. NPV, IRR and payback update instantly.
When to Use It
When comparing projects or investments, deciding whether a purchase clears a hurdle rate, or teaching/learning discounted cash flow and capital budgeting.
Frequently Asked Questions
- What's the difference between NPV and IRR?
- NPV is the value today of all cash flows discounted at your chosen rate — positive means it beats that rate. IRR is the single rate that makes NPV zero; compare it to your required return.
- Is this investment advice?
- No — it's an educational calculator. Real decisions should consider risk, taxes and assumptions this simple model omits.
Last reviewed: 2026-06-27