IRR and NPV Calculator
Enter the cash flows of a project, starting with the amount spent at period 0, and a discount rate. You get the net present value, the internal rate of return, the payback period, the discounted payback period and the profitability index, with a table of each flow and its present value. A project with more than one rate of return shows every one. Everything runs in your browser.
| Period | Cash flow | Present value | Running total |
|---|---|---|---|
| 0 | -1,000.00 | -1,000.00 | -1,000.00 |
| 1 | 300.00 | 277.78 | -722.22 |
| 2 | 400.00 | 342.94 | -379.29 |
| 3 | 500.00 | 396.92 | 17.63 |
| 4 | 600.00 | 441.02 | 458.65 |
Net present value adds up each cash flow divided by (1 + rate) to the power of its period, with the first flow at period 0, so a spreadsheet's NPV function plus the starting amount gives the same answer. The internal rate of return is the rate that makes that sum zero. It is found by checking the sign of the value across a wide range of rates and then narrowing each crossing, so a project whose cash flows change sign more than once reports every rate. Payback is the point where the running total reaches zero, counted in whole and fractional periods. These are estimates of a plan, not a promise of returns. Everything is worked out in your browser and nothing is uploaded.
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Math & MoneyAbout the IRR and NPV Calculator
Net present value adds up each cash flow divided by (1 + rate) to the power of its period, with the first flow counted at period 0, so a spreadsheet's NPV function plus the starting amount gives the same answer. A positive value means the project returns more than the discount rate demands. The internal rate of return is the discount rate at which the net present value is exactly zero. The tool finds it by checking the sign of the value over a wide range of rates and then narrowing in on each crossing, which means it also finds every rate when the cash flows change sign more than once: -1,000, 5,000, -6,000 has rates of 100% and 200%. If the cash flows never change sign, no rate makes the value zero, and the tool says so. For -1,000, 300, 400, 500 and 600 at 8 percent, the net present value is 458.65 and the IRR is 24.89 percent. The payback period is when the running total reaches zero, counted in fractions of a period, and the discounted payback does the same after discounting each flow. The profitability index is the present value of the later flows divided by the first outlay. Cash flows can be separated by commas, spaces or line breaks, and brackets mean money out. This is a planning aid, not a promise of returns. Nothing is uploaded.
What is the difference between NPV and IRR?▾
NPV is an amount: the value today of all the cash flows at a chosen discount rate. IRR is a rate: the discount rate at which that value is zero. A project is attractive when its NPV is positive at your required rate, which is the same as its IRR being above that rate in the usual case.
How do I enter the cash flows?▾
List them in order, starting with period 0, which is usually the money spent and so is negative: -1000, 300, 400, 500, 600. You can separate them with commas, spaces or line breaks, and use brackets for negative numbers.
Why does the tool show no IRR?▾
An internal rate needs both money out and money in. If all the cash flows are positive, or all are negative, no discount rate makes the net present value zero.
Why are there two IRRs?▾
When the cash flows change sign more than once, the net present value can cross zero at more than one rate. -1,000, 5,000, -6,000 has rates of 100 percent and 200 percent. In that case NPV is a safer guide than IRR.
Does the first cash flow count at time 0?▾
Yes. The first flow is not discounted. Spreadsheet NPV functions start discounting at period 1, so add the initial outlay to their result to match this tool. Your cash flows are not uploaded.