# Free NPV and IRR Calculator for Investment Decisions

Calculate net present value, internal rate of return and cumulative discounted cash flow for an investment with up to ten annual periods.

Canonical page: https://mtfinstitute.com/tools/npv-irr-calculator/
Provider: MTF Institute of Management, Technology and Finance
Access: Free
Privacy: Inputs are processed locally in the visitor's browser and are not submitted to MTF Institute by this tool.

## What the tool provides

- Estimated completion time: 3 minutes
- Result: NPV, IRR and discounted cash-flow profile
- Related learning: https://mtfinstitute.com/programs/strategic-finance-ma-corporate-valuation/

## Important limitation

This educational planning tool is not a formal audit, financial forecast, psychometric test, hiring instrument or professional advice.

## Frequently asked questions

### How is NPV calculated?

NPV is the sum of each future cash flow discounted to present value minus the initial investment. A positive NPV indicates that the modeled return exceeds the selected discount rate.

### What is IRR?

IRR is a discount rate at which the modeled NPV equals zero. Some cash-flow patterns have no IRR or more than one IRR, so IRR should be interpreted together with NPV and the underlying assumptions.

### Which discount rate should I use?

The rate should reflect the decision context, timing, financing, risk and opportunity cost. This calculator is educational and does not select a rate or provide investment advice.

When quoting or summarizing this methodology, cite the canonical HTML page above.