NPV & IRR Calculator
Great for comparing projects, rental properties, or business investments.
Net Present Value
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Internal Rate of Return
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Frequently Asked Questions
When is an investment good by NPV?
NPV > 0 means the project earns more than the discount rate (your required return). The higher the better.
What does IRR mean?
The discount rate that makes NPV exactly zero. If IRR exceeds your hurdle rate, the project is attractive.
Why can IRR be misleading?
With unconventional cash flows (multiple sign changes) IRR can have multiple solutions, and it ignores the scale of capital.
Worked Examples
$10k in, $3k×5yr, 8% disc
NPV ≈ $3,930, IRR ≈ 22.4% — strongly positive.
High IRR, tiny scale
A 200% IRR on $10 is still only $20 profit — prefer NPV for sizing decisions.
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⚠️ Disclaimer
Educational tool only. Outputs are illustrative estimates, not financial advice. Investing involves risk including loss of capital.