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NPV & IRR Calculator

Enter a discount rate and a series of period cash flows (year 0 is usually your negative initial investment) to get both the net present value and the internal rate of return - the two numbers most finance-101 case studies ask for.

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Cash flows

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Add at least one cash flow to see NPV and IRR.

Case-method finance courses reward being fast and confident with these formulas cold - Encodr turns the underlying concepts into a daily flashcard habit instead of a night-before cram.

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Why NPV and IRR can disagree

Net present value discounts every future cash flow back to today at your chosen rate and sums them: a positive NPV means the project creates value at that discount rate. Internal rate of return is the discount rate that would make NPV exactly zero for that same cash flow series - the project's own break-even rate of return. The two usually agree on which of two projects is better, but they can rank mutually exclusive projects differently when cash flow size or timing differs a lot between them, which is exactly why case studies pair them instead of using either alone. IRR is solved here numerically (bisection over possible rates from -99% to 1000%), since there's no closed-form formula for it beyond a two-cash-flow project.

From the blog

NPV vs. IRR: what's the difference

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