Calculate the Net Present Value and Internal Rate of Return for any investment, project, or cash flow stream
Enter cash flows for each period. Year 0 is usually your initial investment (negative). Positive = cash in, negative = cash out.
| Period | Cash Flow | Discount Factor | Present Value | Cumulative NPV |
|---|
Sensitivity analysis — how NPV changes as the discount rate varies.
| Discount Rate | NPV | Decision |
|---|
NPV tells you the value an investment adds in today's dollars. A positive NPV means the investment returns more than your required rate — accept it. A negative NPV means it destroys value at your discount rate — reject it (or negotiate a better price).
IRR is the discount rate at which NPV = 0. If the IRR exceeds your required return (discount rate), the investment is worthwhile. IRR is useful for comparing projects of different sizes.
How many years until you recover your initial investment from undiscounted cash flows. Simpler than NPV but ignores the time value of money and cash flows after payback.