NPV & IRR Calculator

NPV & IRR Calculator

Evaluate an investment opportunity the way finance professionals do. This calculator turns a stream of yearly cash flows into the four numbers that matter most for any capital-budgeting decision: Net Present Value (NPV), Internal Rate of Return (IRR), Modified IRR (MIRR), and the Profitability Index. It also reports the simple and discounted payback periods and shows how sensitive your NPV is to small changes in the discount rate.

Nutzung

1. Stellen Sie die initial investment as a positive dollar amount — the tool treats it as the year-zero outflow automatically.
2. Fügen Sie Ihre cash flows (one value per line) into the textarea. Use negative numbers to represent additional outflows or losses in any year.
3. Passen Sie die discount rate slider to match your cost of capital or required rate of return.
4. Legen Sie die reinvestment rate used for Modified IRR — typically equal to your firm’s long-term return on reinvested capital.
5. The summary, year-by-year present-value table, sensitivity table, and cash-flow timeline all update in real time as you tweak inputs.

Funktionen

• Exact NPV — discounts every year’s cash flow back to year zero using the rate you choose.
• Robust IRR engine — uses bisection with bracket expansion so it can locate rates far outside the usual 0–30% band without diverging.
• Modified IRR (MIRR) — separates the finance rate from the reinvestment rate for a more realistic annualised return.
• Profitability Index — the bang-for-buck ratio used in capital-rationing decisions.
• Simple and discounted payback periods — reported in years plus fractional months via linear interpolation.
• Year-by-year discount table — shows each year’s cash flow, discount factor, present value, and cumulative present value (which equals NPV at the final row).
• NPV sensitivity analysis — recomputes NPV at ten common discount rates so you can spot the project’s break-even hurdle at a glance.
• ASCII cash flow timeline — a copy-paste-friendly chart that visualises outflows and inflows by year, scaled to the largest flow in the series.
• Verdict line — accepts or rejects the project at the chosen rate and flags whether IRR clears or fails the hurdle.