Plan projects using IRR, NPV, MIRR, payback, and sensitivity inputs. Test cash flow timing easily. Compare investment options with clearer budgeting confidence starting today.
Enter the project name, initial investment, yearly net cash flows, discount assumptions, and advanced solver settings. Results appear above this form after submission.
Use this example to test the calculator quickly.
| Year | Cash Flow | Note |
|---|---|---|
| Year 0 | USD -120,000.00 | Initial rollout cost |
| Year 1 | USD 30,000.00 | Early operational savings |
| Year 2 | USD 38,000.00 | Process efficiency gain |
| Year 3 | USD 42,000.00 | Stabilized returns |
| Year 4 | USD 45,000.00 | Expanded benefits |
| Year 5 | USD 47,000.00 | Higher throughput savings |
| Year 6 | USD 52,000.00 | Peak improvement period |
NPV(r) = Σ [CFt / (1 + r)^t]
Discount each year’s cash flow back to today using the hurdle rate. A positive NPV means the project adds value at that required return.
IRR = the rate r where Σ [CFt / (1 + r)^t] = 0
IRR is the break-even discount rate. This calculator solves for the primary root using interval search and iterative refinement.
MIRR = (FV of positive cash flows / PV of negative cash flows)^(1/n) - 1
MIRR separates financing and reinvestment assumptions, making it useful when simple IRR may overstate practical returns.
PI = Present value of future inflows / Initial investment
A value above 1.00 indicates the present value of benefits exceeds the initial cost.
Payback = time required for cumulative cash flow to recover the initial outlay
Discounted payback uses discounted cash flows instead of nominal cash flows, so it is more conservative.
Project IRR is the discount rate that makes the project’s net present value equal zero. It summarizes the return implied by the timing and size of all project cash flows.
The hurdle rate reflects the minimum acceptable return for approval. When IRR is above that target, the project may be attractive. When it falls below, the plan usually needs revision or rejection.
Yes. If cash flows change sign more than once, multiple IRRs can exist. In that case, NPV and MIRR often give a clearer decision signal than simple IRR alone.
A missing IRR can happen when cash flows never cross a break-even discount rate, or when the pattern is unusual. Use NPV, MIRR, and the schedule table to evaluate the project instead.
IRR assumes interim cash flows can be reinvested at the IRR itself. MIRR uses separate finance and reinvestment rates, which usually makes it more realistic for project management decisions.
No. Payback only shows how quickly capital is recovered. It ignores much of the value created after recovery, so it should support decision-making rather than replace IRR or NPV.
Yes. Earlier inflows usually increase IRR, while delayed benefits lower it. That is why schedule risk, rollout timing, and milestone slippage matter in project cash flow planning.
NPV deserves more weight when projects differ greatly in scale, timing, or cash flow shape. It measures value added directly, which is often better for ranking competing investment options.
Important Note: All the Calculators listed in this site are for educational purpose only and we do not guarentee the accuracy of results. Please do consult with other sources as well.