NPV IRR Calculator: Evaluate Investment Profitability
Calculate the Net Present Value (NPV) and Internal Rate of Return (IRR) of an investment project based on its cash flows.
NPV
2261 €
IRR (Internal Rate of Return)
17,09%
NPV discounts annual cash flows; IRR is the rate that makes NPV = 0.
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Frequently asked questions
What is NPV?
NPV (Net Present Value) measures the difference between the present value of cash inflows and outflows. A positive NPV means the investment is expected to generate more value than its cost.
What is IRR?
IRR (Internal Rate of Return) is the discount rate that makes the NPV of all cash flows equal to zero. If IRR exceeds your required return, the investment is generally considered profitable.
How do I calculate NPV and IRR?
Enter your initial investment and expected cash flows for each period, then set a discount rate. The calculator instantly computes NPV and IRR to help you compare opportunities.
What Is the Difference Between NPV and IRR?
NPV calculates the current value of future cash flows minus the initial investment, using a chosen discount rate. IRR is the annualized return rate where NPV equals zero. Together, these metrics help you judge whether a project will add value and meet your target return.
How to Use This NPV and IRR Calculator
Enter your initial investment amount, the expected cash flows for each period, and your discount rate. The calculator will compute the net present value and internal rate of return instantly. Use these results to compare projects, evaluate profitability, and guide your investment decisions.
Why NPV and IRR Matter for Investment Decisions
NPV shows the absolute dollar value a project can add after considering the time value of money. IRR provides a percentage return that makes it easy to compare different investments. Using both metrics helps avoid costly mistakes and ensures your capital is allocated to the most profitable opportunities.