NPV & IRR Calculator
Calculate the net present value and internal rate of return of a cash flow series.
Assumptions used in this calculation
- Discount rate and cash-flow timing: Assumes the first entry is the initial outlay at time 0 and each following entry occurs at the end of one period, all discounted at a single constant rate.
About this calculator
Deciding whether a project or investment is worth pursuing means comparing an upfront outlay against a series of future cash inflows, and because those future amounts are worth less than money today, simply summing the raw cash flows overstates the real return — the calculation needs to discount every future cash flow back to present value first. This calculator takes a series of cash flows (starting with the initial, usually negative, outlay) and computes Net Present Value by discounting each flow at a chosen rate and summing the results, and Internal Rate of Return by searching for the discount rate at which NPV equals zero. Both figures answer the same underlying question — is this worth doing — from different angles: NPV in currency terms at your specific discount rate, IRR as a break-even rate independent of any assumed discount rate. Manually iterating toward the IRR by trial and error is tedious and error-prone; this calculator finds it via bisection search in an instant.
Worked example
-1000, 500, 500, 500 at 10% discount
Result: NPV ≈ ₹243, IRR ≈ 23.4%
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