NPV and IRR Calculator
Use the NPV and IRR Calculator with your own values for Cash flows, and Discount rate. It reports Net present value, Internal rate of return, and Discounted future cash flows, shows the formula and worked example, and does not fetch live market or account data.
How to use this calculator
Enter Cash flows, and Discount rate.
Review the model boundary before calculating: Cash flows are treated as occurring at the end of each listed period.
Read Net present value, Internal rate of return, and Discounted future cash flows, then compare the result with the cited source and governing product terms.
Formula
Formula used: NPV = Σ CFₜ / (1 + r)^t; NPV(IRR) = 0. Percentages are converted to decimals before calculation.
Worked example
Example: with Cash flows = −1,000; 600; 600, and Discount rate = 10%, the calculated Net present value is 41.32.
Assumptions and limits
- Cash flows are treated as occurring at the end of each listed period.
- IRR can be absent or have multiple solutions when cash-flow signs change more than once.
- This educational estimate is not investment, tax, accounting, or legal advice.
Sources
- OpenStax: Internal Rate of Return (IRR) MethodNPV and IRR definitions, cash-flow timing, and decision limitations. Reviewed 2026-08-24.
- OpenStax, Rice University: Principles of Finance 2e — Net Present Value MethodOfficial formula or method source used by this calculator. Reviewed 2026-08-24.
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Verification
How this calculator is checked
Trust comes from reproducible evidence, not model confidence. You can inspect the formula, assumptions, worked example, and cited sources on this page.
- Versioned calculationFormula logic is kept separate from the interface and covered by automated registry and behavior checks.
- Cited evidenceSources linked for independent checking: 2.
- Transparent AI useAI may assist drafting or adversarial review. Agreement between models is not proof, and no human expert review is claimed unless a named reviewer is shown.
Risk-sensitive calculator. No human domain-expert review is recorded for this page. Treat the result as an educational estimate, not as medical, financial, tax, legal, electrical, engineering, or safety approval.
Frequently asked questions
How does the NPV and IRR Calculator work?
Formula used: NPV = Σ CFₜ / (1 + r)^t; NPV(IRR) = 0. Percentages are converted to decimals before calculation.
What should I enter in the NPV and IRR Calculator?
Enter Cash flows, and Discount rate using one consistent currency and time basis.
What should I verify before using the NPV and IRR Calculator result?
Verify these limits: Cash flows are treated as occurring at the end of each listed period. IRR can be absent or have multiple solutions when cash-flow signs change more than once. This educational estimate is not investment, tax, accounting, or legal advice.
Last updated 2026-08-25 · periodic-conventional-cashflow-bisection-v1 · content-2026-08-24 · Published by YunFanLabs