Net Present Value (NPV) Calculator vs Internal Rate of Return (IRR) Calculator
Two calculators for the same neighbourhood of questions. Here is what each measures, what you feed in, and where you'd reach for one over the other.
Net Present Value (NPV) Calculator
Calculates the net present value of a project with uniform annual cash flows and an optional terminal value. Use it to decide whether a capital investment creates or destroys value in today's dollars.
- Answers
- Net Present Value ($)
- Inputs
- Initial Investment, Annual Cash Flow, Discount Rate (WACC), Project Duration, Terminal Value
Internal Rate of Return (IRR) Calculator
Find the annualized return that makes a project's net present value zero, assuming equal annual cash flows. Use it to judge whether an investment clears your required rate of return.
- Answers
- Internal Rate of Return (%)
- Inputs
- Initial Investment, Annual Cash Flow, Number of Years
At a glance
| Net Present Value (NPV) Calculator | Internal Rate of Return (IRR) Calculator | |
|---|---|---|
| Category | Economics | Financial |
| Answers | Net Present Value | Internal Rate of Return |
| Inputs | 5 | 3 |
| Result unit | $ | % |
When to use each
Calculates the net present value of a project with uniform annual cash flows and an optional terminal value. Use it to decide whether a capital investment creates or destroys value in today's dollars.
Find the annualized return that makes a project's net present value zero, assuming equal annual cash flows. Use it to judge whether an investment clears your required rate of return.