IRR
20.02%
IRR NPV Calculator
Compute Net Present Value and Internal Rate of Return for a series of cash flows.
Net Present Value
$2,453.38
Periods
4
Discount Rate
10.00%
Sum of Cash Flows
$6,000.00
How to use the IRR NPV Calculator
The IRR NPV Calculator is free and runs entirely in your browser — no sign-up, and nothing you enter leaves your device. It opens pre-filled with a realistic example, so you can see how it works before replacing any figure with your own; the results update as you type. Press Calculate to refresh the result panel, or Reset to return to the example.
The inputs it asks for:
- Discount Rate — a percentage (enter 6 for 6%).
- Cash Flows (comma-separated, Year 0 first) — typed in directly, in the format shown.
The formula
It reads your cash flows in order (Year 0 first, usually the negative outlay) and discounts each back to today. NPV sums those present values at the rate you choose; IRR is the rate that makes that sum exactly zero:
NPV = Σ CFₜ / (1 + r)ᵗ (t = 0…n)
IRR is the rate r that makes NPV = 0- CFₜ
- the cash flow in period t — Year 0 first, and typically negative
- r
- the discount rate per period
- IRR
- the rate at which the project's NPV is exactly zero
A positive NPV means the cash flows are worth more than the discount rate demands — the project adds value at that rate. IRR says the same thing as a single break-even rate, found numerically. The two can disagree when ranking projects, and IRR misbehaves when the cash flows change sign more than once.
Worked example
Using the example values — Discount Rate 10%, Cash Flows (comma-separated, Year 0 first) -10000, 3000, 4000, 4000, 5000 — the IRR NPV Calculator returns a Net Present Value of $2,453.38. It also reports IRR (20.02%), Periods (4), Discount Rate (10.00%).
Prefer your own numbers? Change any field above and this recomputes instantly.
Key terms
- Net present value (NPV)
- The sum of future cash flows discounted to today, net of the initial outlay.
- Internal rate of return (IRR)
- The discount rate that makes NPV zero — the project's implied annual return.
- Discount rate
- The required return (or cost of capital) used to value future cash.
- Cash flow
- Money in (positive) or out (negative) in a given period.
Frequently asked questions
How do I enter the cash flows?
In order, Year 0 first, comma-separated. Year 0 is usually the initial cost as a negative number; later inflows are positive — e.g. −10000, 3000, 4000, 4000, 5000.
NPV or IRR — which should I trust?
NPV, generally. It's stated in money at your actual required return and adds up across projects. IRR is a convenient single rate but can mislead when projects differ in size or timing.
Why might IRR show N/A?
If the cash flows never cross zero (all one sign), or switch sign several times, there may be no single IRR — a known limitation of the measure.