Toolstia / NPV and IRR calculator
NPV and IRR calculator
Enter a list of cash flows and a discount rate to see the net present value, the internal rate of return and the payback period of an investment.
The first cash flow is period 0 (today) and is not discounted. A period can be a year, a quarter or a month, as long as the discount rate uses the same period. The IRR needs at least one outflow and one inflow, and some unusual cash flow patterns have more than one IRR.
How it works
- Enter the cash flows, with money out as a minus.
- Enter the discount rate.
- Read the NPV, IRR and payback.
Net present value
NPV adds up the cash flows after discounting each one back to today. A positive NPV means the project beats the discount rate.
Internal rate of return
IRR is the discount rate at which the NPV is zero. It is found by repeated search.
Payback period
The time it takes for the running total of cash flows to turn positive.
Period zero
The first cash flow is today and is not discounted.
Questions
What discount rate should I use?
Use the return you could earn elsewhere, or your cost of capital.
Why is the IRR missing?
IRR needs at least one outflow and one inflow.
Is my data stored?
Everything is worked out in your browser, and nothing you type is sent anywhere.