NPV and IRR Calculator
Net present value, IRR and MIRR of uneven cash flows.
Cash flow for each year
Your result
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Enter your numbers to see the result.
This NPV and IRR calculator evaluates an investment from its cash flows. Enter the initial investment, the cash flow for each year (positive or negative) and your discount rate to see the net present value (NPV), internal rate of return (IRR), modified IRR (MIRR), profitability index and discounted payback period, with a present value table for every year.
What is a NPV and IRR Calculator?
Net present value (NPV) measures what an investment is worth today. Money received in the future is worth less than money now, so each future cash flow is discounted at your required rate of return and added up, then the initial investment is subtracted. A positive NPV means the investment earns more than your required return.
The internal rate of return (IRR) is the discount rate at which NPV equals zero: the project’s own rate of return. Together with the modified IRR, the profitability index and the discounted payback period, NPV and IRR are standard tools for capital budgeting. This NPV and IRR calculator computes all of them from your cash flows.
How does the NPV and IRR Calculator work?
Each year’s cash flow is divided by (1 + discount rate) raised to the year number, and the results are added and reduced by the initial investment to give NPV. IRR is found by searching for the rate that makes NPV zero. MIRR compounds positive flows forward at the discount rate and compares them with the present value of the outflows.
How to use the NPV and IRR Calculator step by step
- Choose your currency.
- Enter the initial investment.
- Enter your discount rate (cost of capital or required return).
- Enter the cash flow for each year; use negative numbers for extra costs.
- Read NPV, IRR, MIRR and the profitability index.
- Check the present value table and download it.
NPV and IRR Calculator example with real numbers
A business is considering a $100,000 machine that should bring in extra cash over five years. Its required return is 10%.
| Example input | Value |
|---|---|
| Initial investment | $100,000 |
| Cash flows, years 1 to 5 | $30,000, $35,000, $40,000, $30,000, $20,000 |
| Discount rate | 10% |
| Example output | Value |
|---|---|
| Net present value at 10.00% | $19,160 |
| Internal rate of return (IRR) | 17.60% |
| Modified IRR (MIRR) | 13.92% |
| Profitability index | 1.19 |
| Present value of cash flows | $119,160 |
| Discounted payback | 3.67 years |
| Total undiscounted cash flow | $55,000 |
The NPV and IRR calculator shows an NPV of $19,160 and an IRR of 17.60%, so the machine earns more than the 10% hurdle. It pays back in discounted terms after 3.67 years.
Key features of this NPV and IRR Calculator
- NPV, IRR, MIRR and profitability index
- Uneven and negative cash flows
- Up to 50 years
- Discounted payback
- Present value table and CSV
Who should use the NPV and IRR Calculator?
Who is this NPV and IRR Calculator for?
- Finance and MBA students
- Business owners evaluating projects
- Real-estate investors
- Analysts and consultants
Practical use cases
- Deciding whether to buy equipment
- Comparing two projects
- Evaluating a rental property
- Checking homework and case studies
Key benefits
- Complete: four measures in one place.
- Flexible: any pattern of cash flows.
- Transparent: year-by-year table.
- Private: runs in your browser.
Tips for better results
- Use your cost of capital or the return you could earn elsewhere as the discount rate.
- Include all costs, such as maintenance, as negative flows.
- When projects differ in size, NPV is a better guide than IRR.
- Test a higher discount rate to see how sensitive the result is.
Common mistakes to avoid
- Ignoring the time value of money.
- Using IRR alone when cash flows change sign several times.
- Forgetting the salvage value in the final year.
- Mixing nominal cash flows with a real discount rate.
Limitations of this NPV and IRR Calculator
- Cash flows are assumed at year end.
- It uses a single discount rate for all years.
- Taxes and inflation must be built into your cash flows.
NPV and IRR Calculator vs other ways to calculate
| Measure | Decision rule | Watch out for |
|---|---|---|
| NPV | Accept if positive | Depends on the discount rate |
| IRR | Accept if above required return | Multiple IRRs with sign changes |
| MIRR | Accept if above required return | Assumes reinvestment at the discount rate |
| Payback | Shorter is safer | Ignores flows after payback |
For a quick payback check, use the payback period calculator. To value a company, try the DCF calculator.
Privacy and data handling
This NPV and IRR Calculator runs entirely in your browser. The numbers you type are not sent to Qorico or stored on any server, and nothing is saved after you close the page. The Copy and Download buttons create the result on your own device. If the page has analytics turned on, it may count that a calculation happened, but it does not record the values you entered.
NPV and IRR Calculator FAQs
What is a good NPV?
Any positive NPV means the investment earns more than your discount rate. Higher is better when comparing similar projects.
What is the difference between NPV and IRR?
NPV gives a value in money at your chosen rate; IRR gives the rate at which NPV is zero.
Which discount rate should I use?
Your cost of capital or the return on the best alternative investment with similar risk.
Why is there no IRR?
If cash flows never turn the NPV from negative to positive, no IRR exists in a meaningful range.
What is MIRR?
A modified IRR that assumes positive cash flows are reinvested at the discount rate, avoiding multiple-IRR problems.
Can cash flows be negative?
Yes. Enter negative numbers for years with extra costs.
Related tools
Sources and references
We checked the method and the current figures used in this NPV and IRR Calculator against these official and primary sources:
- Investor.gov: Glossary
- CFA Institute
- U.S. Small Business Administration
- Corporate Finance Institute: NPV
Written and reviewed by the Qorico Team
