Calculate the Internal Rate of Return (IRR) using the cashflows at the time entered using a guess and check method

PV_{t} = | C_{t} |

(1 + i)^{t} |

where C

Time | Cashflow (C_{t}) | (1 + i)^{t} | PV_{t} = C_{t}/(1 + i)^{t} |
---|---|---|---|

0 | -8,000.00 | 1.00000 | -8,000.00 |

1 | 3,500.00 | 1.01000 | 3,465.35 |

2 | 3,500.00 | 1.02010 | 3,431.04 |

3 | 3,500.00 | 1.03030 | 3,397.07 |

NPV = -8,000.00 + 3,465.35 + 3,431.04 + 3,397.07

NPV =

PV_{t} = | C_{t} |

(1 + i)^{t} |

where C

Time | Cashflow (C_{t}) | (1 + i)^{t} | PV_{t} = C_{t}/(1 + i)^{t} |
---|---|---|---|

0 | -8,000.00 | 1.00000 | -8,000.00 |

1 | 3,500.00 | 1.02000 | 3,431.37 |

2 | 3,500.00 | 1.04040 | 3,364.09 |

3 | 3,500.00 | 1.06121 | 3,298.12 |

NPV = -8,000.00 + 3,431.37 + 3,364.09 + 3,298.12

NPV =

PV_{t} = | C_{t} |

(1 + i)^{t} |

where C

Time | Cashflow (C_{t}) | (1 + i)^{t} | PV_{t} = C_{t}/(1 + i)^{t} |
---|---|---|---|

0 | -8,000.00 | 1.00000 | -8,000.00 |

1 | 3,500.00 | 1.03000 | 3,398.06 |

2 | 3,500.00 | 1.06090 | 3,299.09 |

3 | 3,500.00 | 1.09273 | 3,202.99 |

NPV = -8,000.00 + 3,398.06 + 3,299.09 + 3,202.99

NPV =

PV_{t} = | C_{t} |

(1 + i)^{t} |

where C

Time | Cashflow (C_{t}) | (1 + i)^{t} | PV_{t} = C_{t}/(1 + i)^{t} |
---|---|---|---|

0 | -8,000.00 | 1.00000 | -8,000.00 |

1 | 3,500.00 | 1.04000 | 3,365.38 |

2 | 3,500.00 | 1.08160 | 3,235.95 |

3 | 3,500.00 | 1.12486 | 3,111.50 |

NPV = -8,000.00 + 3,365.38 + 3,235.95 + 3,111.50

NPV =

PV_{t} = | C_{t} |

(1 + i)^{t} |

where C

Time | Cashflow (C_{t}) | (1 + i)^{t} | PV_{t} = C_{t}/(1 + i)^{t} |
---|---|---|---|

0 | -8,000.00 | 1.00000 | -8,000.00 |

1 | 3,500.00 | 1.05000 | 3,333.33 |

2 | 3,500.00 | 1.10250 | 3,174.60 |

3 | 3,500.00 | 1.15763 | 3,023.42 |

NPV = -8,000.00 + 3,333.33 + 3,174.60 + 3,023.42

NPV =

PV_{t} = | C_{t} |

(1 + i)^{t} |

where C

Time | Cashflow (C_{t}) | (1 + i)^{t} | PV_{t} = C_{t}/(1 + i)^{t} |
---|---|---|---|

0 | -8,000.00 | 1.00000 | -8,000.00 |

1 | 3,500.00 | 1.06000 | 3,301.89 |

2 | 3,500.00 | 1.12360 | 3,114.99 |

3 | 3,500.00 | 1.19102 | 2,938.66 |

NPV = -8,000.00 + 3,301.89 + 3,114.99 + 2,938.66

NPV =

PV_{t} = | C_{t} |

(1 + i)^{t} |

where C

Time | Cashflow (C_{t}) | (1 + i)^{t} | PV_{t} = C_{t}/(1 + i)^{t} |
---|---|---|---|

0 | -8,000.00 | 1.00000 | -8,000.00 |

1 | 3,500.00 | 1.07000 | 3,271.03 |

2 | 3,500.00 | 1.14490 | 3,057.04 |

3 | 3,500.00 | 1.22504 | 2,857.05 |

NPV = -8,000.00 + 3,271.03 + 3,057.04 + 2,857.05

NPV =

PV_{t} = | C_{t} |

(1 + i)^{t} |

where C

Time | Cashflow (C_{t}) | (1 + i)^{t} | PV_{t} = C_{t}/(1 + i)^{t} |
---|---|---|---|

0 | -8,000.00 | 1.00000 | -8,000.00 |

1 | 3,500.00 | 1.08000 | 3,240.74 |

2 | 3,500.00 | 1.16640 | 3,000.69 |

3 | 3,500.00 | 1.25971 | 2,778.42 |

NPV = -8,000.00 + 3,240.74 + 3,000.69 + 2,778.42

NPV =

PV_{t} = | C_{t} |

(1 + i)^{t} |

where C

Time | Cashflow (C_{t}) | (1 + i)^{t} | PV_{t} = C_{t}/(1 + i)^{t} |
---|---|---|---|

0 | -8,000.00 | 1.00000 | -8,000.00 |

1 | 3,500.00 | 1.09000 | 3,211.01 |

2 | 3,500.00 | 1.18810 | 2,945.88 |

3 | 3,500.00 | 1.29503 | 2,702.64 |

NPV = -8,000.00 + 3,211.01 + 2,945.88 + 2,702.64

NPV =

PV_{t} = | C_{t} |

(1 + i)^{t} |

where C

Time | Cashflow (C_{t}) | (1 + i)^{t} | PV_{t} = C_{t}/(1 + i)^{t} |
---|---|---|---|

0 | -8,000.00 | 1.00000 | -8,000.00 |

1 | 3,500.00 | 1.10000 | 3,181.82 |

2 | 3,500.00 | 1.21000 | 2,892.56 |

3 | 3,500.00 | 1.33100 | 2,629.60 |

NPV = -8,000.00 + 3,181.82 + 2,892.56 + 2,629.60

NPV =

PV_{t} = | C_{t} |

(1 + i)^{t} |

where C

Time | Cashflow (C_{t}) | (1 + i)^{t} | PV_{t} = C_{t}/(1 + i)^{t} |
---|---|---|---|

0 | -8,000.00 | 1.00000 | -8,000.00 |

1 | 3,500.00 | 1.11000 | 3,153.15 |

2 | 3,500.00 | 1.23210 | 2,840.68 |

3 | 3,500.00 | 1.36763 | 2,559.17 |

NPV = -8,000.00 + 3,153.15 + 2,840.68 + 2,559.17

NPV =

PV_{t} = | C_{t} |

(1 + i)^{t} |

where C

Time | Cashflow (C_{t}) | (1 + i)^{t} | PV_{t} = C_{t}/(1 + i)^{t} |
---|---|---|---|

0 | -8,000.00 | 1.00000 | -8,000.00 |

1 | 3,500.00 | 1.12000 | 3,125.00 |

2 | 3,500.00 | 1.25440 | 2,790.18 |

3 | 3,500.00 | 1.40493 | 2,491.23 |

NPV = -8,000.00 + 3,125.00 + 2,790.18 + 2,491.23

NPV =

PV_{t} = | C_{t} |

(1 + i)^{t} |

where C

Time | Cashflow (C_{t}) | (1 + i)^{t} | PV_{t} = C_{t}/(1 + i)^{t} |
---|---|---|---|

0 | -8,000.00 | 1.00000 | -8,000.00 |

1 | 3,500.00 | 1.13000 | 3,097.35 |

2 | 3,500.00 | 1.27690 | 2,741.01 |

3 | 3,500.00 | 1.44290 | 2,425.67 |

NPV = -8,000.00 + 3,097.35 + 2,741.01 + 2,425.67

NPV =

PV_{t} = | C_{t} |

(1 + i)^{t} |

where C

Time | Cashflow (C_{t}) | (1 + i)^{t} | PV_{t} = C_{t}/(1 + i)^{t} |
---|---|---|---|

0 | -8,000.00 | 1.00000 | -8,000.00 |

1 | 3,500.00 | 1.14000 | 3,070.18 |

2 | 3,500.00 | 1.29960 | 2,693.14 |

3 | 3,500.00 | 1.48154 | 2,362.41 |

NPV = -8,000.00 + 3,070.18 + 2,693.14 + 2,362.41

NPV =

PV_{t} = | C_{t} |

(1 + i)^{t} |

where C

Time | Cashflow (C_{t}) | (1 + i)^{t} | PV_{t} = C_{t}/(1 + i)^{t} |
---|---|---|---|

0 | -8,000.00 | 1.00000 | -8,000.00 |

1 | 3,500.00 | 1.15000 | 3,043.48 |

2 | 3,500.00 | 1.32250 | 2,646.50 |

3 | 3,500.00 | 1.52088 | 2,301.30 |

NPV = -8,000.00 + 3,043.48 + 2,646.50 + 2,301.30

NPV =

Since our 15% IRR resulted in a negative NPV, we use the last interest rate that resulted in a positive NPV which was

IRR = 15%

IRR = 15%

Free Net Present Value (NPV) - Internal Rate of Return (IRR) - Profitability Index Calculator - Given a series of cash flows C_{t} at times t and a discount rate of (i), the calculator will determine the Net Present Value (NPV) at time 0, also known as the discounted cash flow model.

Profitability Index

Also determines an Internal Rate of Return (IRR) based on a series of cash flows. NPV Calculator

This calculator has 1 input.

Profitability Index

Also determines an Internal Rate of Return (IRR) based on a series of cash flows. NPV Calculator

This calculator has 1 input.

- cash flow
- the total amount of money being transferred into and out of a business, especially as affecting liquidity.
- discount rate
- the interest rate used in discounted cash flow (DCF) analysis to determine the present value of future cash flows. Key Takeaways.
- interest
- payment from a borrower or deposit-taking financial institution to a lender or depositor of an amount above repayment of the principal sum, at a particular rate
- net present value (npv) - internal rate of return (irr) - profitability index
- present value
- the value in the present of a sum of money, in contrast to some future value it will have when it has been invested at compound interest.

PV = FV/(1 + i)^{n}

where I is the interest rate per period, PV = Present Value, and FV = Future Value - return
- a performance measure used to evaluate the efficiency of an investment or compare the efficiency of several investments.

Add This Calculator To Your Website