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IRR and NPV Calculator

Enter an investment’s cash flows year by year to find its internal rate of return (IRR) and its net present value (NPV) at your required return.

15.02%Internal rate of return

NPV at 8%$9,767
Total cash in$75,000
Total cash out$50,000

IRR is the discount rate that makes NPV zero. If it beats your required return, the project adds value.

How this calculator works

List cash flows starting with year 0, usually the investment as a negative number, then each year’s net cash in or out.

NPV adds each cash flow divided by (1 + rate)^year.

IRR is the rate that makes NPV exactly zero; it is found numerically.

If IRR is above your required return, NPV at that rate is positive and the project adds value.

Worked example

−$50,000, then $12,000, $15,000, $18,000, $20,000 and $10,000

  1. IRR: about 15.0%.
  2. NPV at 8%: about $9,770.
  3. Both say the project beats an 8% hurdle.

Questions people ask

IRR or NPV?

NPV tells you how much value is added in dollars; IRR gives a rate. When projects differ in size, NPV is the safer guide.

Can there be more than one IRR?

Yes, if cash flows change sign more than once. Then rely on NPV.

What discount rate should I use?

Your cost of capital, or the return you could get on investments of similar risk.

What about uneven timing?

This uses yearly periods. For exact dates, use XIRR in a spreadsheet.

Last reviewed October 2, 2026