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IRR / NPV Calculator

Compute the Net Present Value (NPV) and Internal Rate of Return (IRR) for a series of cash flows to evaluate investment viability.

The upfront cost of the investment (enter as a positive number).
Net cash flow received at the end of Year 1.
Net cash flow received at the end of Year 2.
Net cash flow received at the end of Year 3.
Net cash flow received at the end of Year 4.
Net cash flow received at the end of Year 5.
Your required rate of return or cost of capital (%%).

Results

Net Present Value (NPV)$0.00
Internal Rate of Return (IRR)450.50%

📖What is it?

Net Present Value (NPV) is the difference between the present value of future cash inflows and the initial investment. If NPV is positive, the investment is expected to generate more value than it costs. The Internal Rate of Return (IRR) is the discount rate at which the NPV equals zero — it represents the break-even rate of return.

🎯How to use

1. Enter the initial investment amount (as a positive number — the calculator handles the sign). 2. Enter the expected net cash flows for each of the 5 years. Leave years with no cash flow at 0. 3. Enter your required rate of return (discount rate) as a percentage. The calculator will compute both the NPV at your discount rate and the IRR of the cash flow stream.

💡Example scenario

You invest $100,000 in a project that returns $25,000, $30,000, $35,000, $30,000, and $25,000 over 5 years. With a 10% discount rate, the NPV is about $10,780 (positive, so the investment adds value), and the IRR is approximately 15.2%, which exceeds the 10% hurdle rate.

🏆Pro tip

The NPV rule is the gold standard: accept any project with NPV > 0 at your cost of capital. The IRR is useful for quick comparison, but be careful — it can give misleading results with non-conventional cash flows (sign changes). Always verify with NPV.