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NPV & IRR Calculator
Calculate Net Present Value and Internal Rate of Return for investment decisions
Investment Details
Enter as positive number
Required rate of return or hurdle rate
Year 1:
Year 2:
Year 3:
Year 4:
Year 5:
Results
Enter investment details and click Calculate
NPV and IRR results will appear here
Understanding NPV & IRR
Net Present Value (NPV)
NPV calculates the present value of all future cash flows minus the initial investment. A positive NPV indicates the investment will generate value. NPV is considered the most reliable capital budgeting metric as it accounts for the time value of money.
Internal Rate of Return (IRR)
IRR is the discount rate that makes NPV equal to zero. It represents the project's expected rate of return. Compare IRR to your required rate of return (hurdle rate) - if IRR exceeds the hurdle rate, the investment is attractive.