Money & Finance · Free tool
NPV and IRR Calculator
Calculate Net Present Value, Internal Rate of Return, and payback period with a period-by-period PV breakdown. A free, no-sign-up tool for cash flow analysis.
NPV at 10%
$2,907.87
IRR
19.71%
Payback period
3.25 periods
| t | Cash flow | Discount factor | Present value |
|---|---|---|---|
| 0 | -$10,000.00 | 1.0000 | -$10,000.00 |
| 1 | $2,500.00 | 0.9091 | $2,272.73 |
| 2 | $3,000.00 | 0.8264 | $2,479.34 |
| 3 | $3,500.00 | 0.7513 | $2,629.60 |
| 4 | $4,000.00 | 0.6830 | $2,732.05 |
| 5 | $4,500.00 | 0.6209 | $2,794.15 |
| Σ | $2,907.87 |
When to use each
NPV tells you the absolute dollar value created by a project. Positive NPV = accept; negative = reject. Use the project's required rate of return as the discount rate.
IRR is the discount rate that makes NPV = 0 — the project's implied return. Compare against your cost of capital. If IRR > cost of capital, the project clears your hurdle.
Payback period is undiscounted — useful as a liquidity heuristic but ignores time value. Don't use it alone for big decisions.
Advertisement
What it does
Net Present Value and Internal Rate of Return over a series of cash flows. NPV uses your discount rate to value the project in today's dollars; IRR is the rate that makes NPV = 0 — the project's implied return.
For simpler interest math, see compound interest and ROI.
Embed this tool on your siteShow snippetHide
Paste this snippet into any page. Loads on-demand (lazy), no tracking scripts, and sized to most dashboards. Replace the height to fit your layout.
<iframe src="https://freetoolarena.com/embed/npv-irr-calculator" width="100%" height="720" frameborder="0" loading="lazy" title="NPV and IRR Calculator" style="border:1px solid #e2e8f0;border-radius:12px;max-width:720px;"></iframe>How to use it
- Enter cash flows comma-separated, starting with t=0 (usually a negative initial outlay).
- Set the discount rate (your hurdle rate or cost of capital).
- Read NPV, IRR, and simple payback period. The table breaks down each period's PV.
Advertisement
Learn more
Guides about this topic
- Money & Business · GuideHow to Save Money FastGenerate 15 real tactics to save money fast by automating cuts and raising income. Instant checklist, free and no sign-up required.
- Money & Business · GuideThe Best Side Hustles for BeginnersFilter honest side hustle ideas by immediate payout and long-term potential instantly. Identify real opportunities and skip the scams free online.
- Money & Business · GuideHow to Start Investing With $100Start investing with just $100: pick a broker, buy a low‑cost index fund, and automate your contributions. Free online guide with no sign‑up required.
- Money & Business · GuideHow to Make a Monthly BudgetBuild a budget in 20 minutes using zero-based rules. Create your monthly budget online for free instantly with no registration, tailored to your life.
- Money & Business · GuideHow to Pay Off Debt FastCompare snowball and avalanche debt payoff methods with real math—which saves dollars, which builds momentum. A free instant calculator, no sign-up needed online.
- Money & Business · GuideHow to Build Credit From ZeroTransform your credit score with a secured card and on-time payments. Learn what mistakes to avoid in this free, no sign-up guide for beginners.
Explore more money & finance tools
- Scientific CalculatorSolve expressions with trigonometry, logarithms, sqrt, pi, and e instantly online. Use the free scientific calculator with history and DEG/RAD toggle.
- Amortization CalculatorFull amortization schedule for any fixed-rate loan. Principal vs interest split per payment, total interest, CSV export.
- Percentage Change CalculatorCalculate the percent change between two values with direction indicators and absolute delta instantly. Free, no-sign-up tool right in your browser for finances.
- CalculatorPerform quick add, subtract, multiply, and divide calculations with full keyboard support instantly online. Use this free, no-ads basic calculator in your browser with no downloads.
- Low-Buy Year TrackerLog every purchase, mark needs vs. wants, and monitor monthly budgets to curb lifestyle creep. Free, no-signup tool to track your spending in seconds.
- Subscription Fatigue AuditorList your subscriptions, mark each keep/review/cancel. Auto-flags low-use services and projects yearly savings if you act on the kill list.