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NPV & IRR Calculator

Finance & Investment

Net present value, internal rate of return and payback period

Quick Answer

NPV & IRR Calculator: Net present value, internal rate of return and payback period. NPV = Σ CFₜ ÷ (1+r)ᵗ − initial investment; accept if NPV > 0.

NPV @ 8%

+45,865

NPV > 0 → worth investing

IRR

24.89%

IRR 24.89% > 8% hurdle → accept

Total inflow180,000
Nominal gain+80,000
PaybackYear 3
Years4

Steps

  1. 1NPV = −100,000 + 30,000/(1+8%)^1 + 40,000/(1+8%)^2 + 50,000/(1+8%)^3 + 60,000/(1+8%)^4
  2. 2NPV = 45,865
  3. 3IRR: solve NPV = 0 by bisection → 24.89%

Decision rules

MetricAccept whenMeaning
NPV> 0Value created after cost of capital
IRR> hurdle rateBreak-even discount rate
Payback< expected horizonTime to recover principal (ignores discounting)

💡 NPV and IRR usually agree, but for mutually exclusive projects of different scales, trust NPV — IRR can mislead when cash flow signs flip multiple times.

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How to Use

  1. Enter amounts and terms: fill principal, rate and period in the NPV & IRR Calculator (defaults work for a quick try).
  2. Instant results: key figures and cost breakdown update live as you type.
  3. Compare scenarios: tweak any parameter to compare costs and returns across plans.
  4. Copy key numbers: one-click copy for records or sharing with your advisor.

Key Points

  • NPV & IRR Calculator is a free online finance tool — open and use, no sign-up.
  • All calculations run locally in your browser; your data never leaves the device.
  • Key capability: Net present value, internal rate of return and payback period.
  • Results come with formulas and reference tables so you can verify every number.

Formula & How It Works

Investment appraisal

NPV = Σ CFₜ ÷ (1+r)ᵗ − initial investment; accept if NPV > 0
IRR: the rate making NPV = 0 (bisection solver); accept if IRR > required return
PI = PV of inflows ÷ investment; > 1 acceptable

FAQ

How do I use the NPV & IRR Calculator?
Open the page and fill in the input fields — results update automatically. Net present value, internal rate of return and payback period.
Are the results accurate?
Yes. Standard financial formulas and published rate data are used. For official figures, consult your financial institution.
Is it free? Do I need to sign up?
Completely free. No registration, login or download required.
Can I use the results for financial decisions?
Results are for reference. Consult a licensed financial advisor before major decisions.
Does it work on mobile?
Yes. Fully responsive on phones, tablets and desktops.

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Source & Updates

Based on published rate tables and standard financial formulas. Last updated: 2025-07

Authoritative sources:

Last updated:

Formulas and content on this page are reviewed by the YiJianSuan team. For reference only — official sources prevail.

Maintained and periodically reviewed by the YiJianSuan editorial team — review process in ourEditorial Policy.

Cite this page: YiJianSuan. NPV & IRR Calculator[EB/OL]. https://www.yijiansuan.com/en/c/finance/npv-irr

Results provided by this tool are for reference only and do not constitute professional advice.