NPV & IRR Calculator
Is this investment or project worth it?
Used by companies, banks and investors to decide whether a project earns more than its cost of capital.
How this calculator works
NPV = sum of each year’s cash flow ÷ (1 + discount rate)^year, minus the initial investment. IRR is the discount rate that makes NPV zero. Payback is when cumulative (undiscounted) cash flow turns positive. Profitability index = present value of inflows ÷ investment.
Frequently asked questions
What does a positive NPV mean?
The project earns more than your required return, adding value. A negative NPV means your money would do better elsewhere at that required return.
NPV or IRR — which should I trust?
NPV is usually more reliable for choosing between projects of different sizes. IRR is easy to communicate but can mislead with unusual cash flows.
Results are estimates based on the numbers you enter and simplified assumptions. They are not financial advice. See our disclaimer.