NPV and IRR calculator
Enter your values. The answer and the full worked solution update as you type.
Result
NPV€852.52
IRR11.93 %
Step-by-step solution
Discount each cash flow
CF0/(1 + 0.08)0 = −10000
CF1/(1 + 0.08)1 = 2778
CF2/(1 + 0.08)2 = 3429
CF3/(1 + 0.08)3 = 3175
CF4/(1 + 0.08)4 = 1470
Sum
NPV = €852.52
IRR: NPV = 0 at 11.93%
Key formulas
- Net present value
- NPV = −C0 + Σ CFt/(1 + r)t
- Equal cash flows
- NPV = −C0 + CF·[1 − (1 + r)−n]/r
- Internal rate of return
- the r at which NPV = 0
- Decision
- accept when NPV > 0 (or IRR > required return)
Practise NPV & IRR
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