This net present value and internal rate of return calculator (NPV IRR Calculator) pairs NPV and IRR together in order to demonstrate the relationship between net present value and IRR when making capital investment decisions. With this calculator, the decision maker doesn't have to decide which one they'd rather use. To use this NPV IRR Calculator, visit the link below: https://iqcalculators.com/calculator/npv-irr-calculator/

1. NPV IRR
CALCULATOR
NPV: Net Present Value is the present value of future
cash flows and is a metric that is used to make capital
finance decisions.
https://iqcalculators.com/calculator/npv-irr-calculator/
IRR: Internal rate of return is a measurement also used
to make capital finance decisions, however it is defined
as that rate of return where the net present value of
future cash flows equals zero.
NPV IRR Calculator: This calculator combines NPV and
IRR in order to see how they work together and relate.

2. NPV IRR
CALCULATOR
Entering Data In The Data Fields
Initial Investment: The initial capital investment
required in the user's scenario.
Investment Appreciation Rate: This is the rate that the
investment will appreciate each year. If the appreciation
rate is negative (depreciation) show this with a negative
rate.
Years: The number of years that the user wants to
project into the future.

3. NPV IRR
CALCULATOR
Entering Data In The Data Fields
Annual Net Cash Flow: This is the projected cash flow
net of all expenses that the investor or business expects
to receive from the investment.
Cash Flow Increase: The rate at which the annual net
cash flow will increase each year.
Discount Rate: This is the rate at which future cash
flows will be discounted back to a net present value.

4. NPV IRR
CALCULATOR
Understanding The Results
Internal Rate of Return: This is the internal rate of
return based upon the information entered and in the
final year of the projections.
Total Cash Flow: The total amount of cash flow
received from the projections entered into the calculator
Net Present Value: This is the net present value given
the variables entered in the last year of the projection.
Final Investment Value: The value of your capital
investment in the final year of the projections.

5. NPV IRR
CALCULATOR
Understanding The Results - The Table
Net Cash Flow: This is the net cash flow the business or
investor is projected to receive based on the input
fields. If the user enters a cash flow increase rate, the
cash flow will increase each year.
Investment Value @ Sale: This is the value of the capital
asset or investment if the user were to sell it in a certain
year in the table.
NPV: The net present value in each year taking into
consideration the net cash flows and the investment
value @ sale.
IRR: The internal rate of return each year taking into
consideration the net CF and investment value @ sale.

6. NPV IRR
CALCULATOR Understanding The Results - The Charts
Cumulative Net Cash Flow: This shows a cumulative
line chart of the net cash flows over time. The x axis is
time while the y axis display the cumulative dollar
amounts.

7. NPV IRR
CALCULATOR Understanding The Results - The Charts
Investment Value Chart: This chart displays the value of
the capital investment over time. If the user enters an
asset appreciation rate this will be trending upward and
vice versa if a negative appreciation rate is entered.

8. NPV IRR
CALCULATOR Understanding The Results - The Charts
Net Present Value Chart: The net present value chart
displays the net present value trend over time with the x
axis being time and the y axis being dollars.

9. NPV IRR
CALCULATOR Understanding The Results - The Charts
Internal Rate of Return Chart: This internal rate of return
chart displays out the IRR trends over time. Similar to
the NPV, this chart may trend upward or downward
depending on the inputs.

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