NPV / IRR Calculator
Evaluate investments using discounted cash flow analysis
Project Details
Upfront cost of the project
Required rate of return / hurdle rate
Years of cash flows (1-20)
📚 Understanding NPV & IRR
NPV and IRR are powerful tools for evaluating investment projects by considering the time value of money.
Key Metrics:
- NPV (Net Present Value): Present value of all cash flows minus initial investment. Positive NPV = profitable project.
- IRR (Internal Rate of Return): Discount rate that makes NPV = 0. Higher IRR = better project.
- Profitability Index: PV of cash flows / Initial investment. Above 1.0 = profitable.
Decision Rules:
- Accept if NPV > 0
- Accept if IRR > discount rate
- Accept if PI > 1.0
- Higher NPV/IRR = better investment
NPV
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IRR
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Profitability Index
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Decision
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Cash Flow Breakdown
| Period | Cash Flow | Discount Factor | Present Value |
|---|---|---|---|
| Cash flow breakdown will appear here | |||
📊 Visual representation of cash flows and present values
💡 Detailed insights and recommendations will appear after calculation