Estimate annual internal rate of return and net present value for a fixed cash-flow pattern or a series of annual cash flows. Compare the return with your own required rate.
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Numerical search range: −99.99% to 100,000% annually. Nonconventional cash flows can have several solutions; this search is not guaranteed to find every root.Cash-flow schedule
| Cash flow | Time (years) | Amount | Present value |
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How to interpret IRR and NPV
IRR is a rate that makes the sum of discounted cash flows equal zero. This tool solves Σ cash flow ÷ (1 + rate)time in years = 0. NPV uses the same formula at the required return you enter.
Why can there be more than one IRR?
When net cash flows switch signs more than once, several rates may make NPV zero. Some patterns have no solution. Review the timing, total amounts and NPV; a single reported percentage may not fully describe the investment.
Is this the same as ROI?
No. Simple ROI compares total gain with the invested amount. IRR also considers when money is paid or received. A higher IRR does not by itself mean a project has greater total profit or lower risk.
What does a positive NPV mean?
The discounted receipts exceed discounted outflows at your chosen required return. A negative NPV means they fall short of that benchmark. These statements describe the entered cash flows, not a prediction of future performance.
Does the annual mode handle irregular dates?
No. Amounts can differ, but each line is assumed to occur at the end of its numbered year. For actual irregular dates, use a date-based XIRR calculation. Do not remove zero-flow years, because doing so changes timing.
What is excluded?
Taxes, fees, reinvestment transactions, inflation and investment risk are not added automatically. Include relevant payments in your cash flows. Display currency changes formatting only.