NPV IRR Calculator

Run Your NPV & IRR Analysis in 30 Seconds

Free NPV IRR calculator: enter cash flows, get net present value and internal rate of return instantly. Make smarter capital decisions in seconds.

Rate & Initial Outlay

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$
Enter as a negative value for cash outflow

Subsequent Annual Cash Flows

$
$
$
$
$

Valuation Results

Net Present Value (NPV)
$0.00
Present value of standard inflows vs outlays
Internal Rate of Return (IRR)
0.0%
The discount rate where project NPV equals zero

If the calculated Net Present Value is positive, the asset addition or project generates yields above the discount capital hurdle threshold and is generally deemed financially viable.

Frequently Asked Questions

Calculate NPV and IRR online — no spreadsheet needed. Input your cash flows and discount rate, and instantly know if your investment is worth it.

Q1: What is an NPV IRR calculator and what does it do?
A: An NPV IRR calculator computes two core investment metrics simultaneously. Net Present Value (NPV) tells you the dollar value a project adds today, after discounting future cash flows. Internal Rate of Return (IRR) tells you the annualized return rate. Together, they give you a complete picture of whether an investment is worth pursuing.

Q2: How do I calculate NPV and IRR together?

A: Enter three inputs: your discount rate, your initial investment (as a negative number), and your annual cash flows for each subsequent year. The calculator handles the rest — NPV via discounted cash flow summation, IRR via iterative approximation. No spreadsheet formulas required.

Q3: What IRR value is considered good?

A: A project is generally attractive when IRR exceeds your discount rate or cost of capital. For personal investments, many FIRE practitioners target an IRR above 10–15%. For real estate, 8–12% is often the benchmark. Context matters — always compare IRR against your specific hurdle rate.

Q4: How does changing the discount rate affect NPV?

A: Higher discount rates reduce NPV — future cash flows are worth less in today's dollars. Lower rates increase NPV. This is why two investors can look at the same project and reach opposite conclusions: their required rates of return differ. Run multiple scenarios to stress-test your assumptions.

Q5: How many years of cash flows do I need to calculate IRR?

A: IRR requires at least one sign change in your cash flow series — typically a negative initial outlay followed by positive returns. Practically, 2–5 years of projected cash flows produce reliable results. More years add precision but also add forecasting risk.

Q6: Can I use this NPV IRR calculator for real estate investments?

A: Yes. Input your down payment or total acquisition cost as Cash Flow 0 (negative), then enter projected annual net rental income for each year. The resulting NPV shows whether the deal beats your target return; the IRR lets you compare it directly against stocks, REITs, or other assets.

Q7: What does a negative NPV mean?

A: A negative NPV means the investment destroys value at your chosen discount rate — projected returns don't compensate for the risk and time cost of capital. It does not necessarily mean the project loses money in nominal terms; it means it underperforms your benchmark. Adjust your cash flow assumptions or reconsider the opportunity.

Q8: Is IRR or NPV more reliable for investment decisions?

A: Use both. NPV is the more reliable single metric — it shows absolute value creation in dollars. IRR can be misleading when cash flows change sign multiple times or when comparing projects of different sizes. The best practice: use NPV to decide, use IRR to communicate the return to stakeholders.