NPV & IRR Multi-Year Investment Calculator
Input your initial investment, discount rate, and expected cash flows for years 1 through 5 to see the project's net present value and an estimated internal rate of return.
About this calculator
Estimate the net present value and approximate internal rate of return of an investment given an initial outlay and up to five years of projected cash flows.
Frequently Asked Questions
What is NPV?
Net present value discounts future cash flows back to today's dollars using a chosen discount rate, then subtracts the initial investment to see if a project creates value.
How is IRR estimated here?
This calculator uses a bisection search to approximate the discount rate at which NPV equals zero, which is the internal rate of return.
What discount rate should I use?
Many investors use their cost of capital, required rate of return, or a benchmark like expected market returns as the discount rate.