NPV and IRR calculator (with MIRR and payback)

Calculate NPV, IRR, modified IRR, payback and discounted payback for a series of periodic cash flows, with the NPV profile across rates.

업데이트 검증한 예제: 6

One amount per period, separated by spaces, new lines or a comma and a space; 10,000 reads as ten thousand. Outflows are negative.
%
추가 옵션
%
Rate paid on the money used to fund the outflows.
%
Rate earned when the inflows are reinvested.
시도하기
Net present value
$
Net present value: $1,307.29
소수 자릿수: 2; 가장 가까운 값, 중간값은 끝자리가 짝수인 쪽으로
Internal rate of return
16.34%
Modified IRR
15.15%
Payback period
2.41periods
Discounted payback period
2.74periods
Profitability index
1.1307

The project is worth $1,307.29 more than it costs in today's money at a 10% discount rate. Its IRR is 16.34% and it pays back after 2.41 periods.

NPV profile

$0$2,000$4,0000%5%10%15%20%Discount rateNPVNPV = 0Discount rateIRR 16.34%

Cumulative cash flow

−$10K−$5,000$00123Period
Cumulative (payback 2.41)Cumulative present value (payback 2.74)
Cash flows and discounting 행 수: 4
PeriodCash flowDiscount factorPresent valueCumulativeCumulative PV
0−$10,000.001−$10,000.00−$10,000.00−$10,000.00
1$3,000.000.9091$2,727.27−$7,000.00−$7,272.73
2$4,200.000.8264$3,471.07−$2,800.00−$3,801.65
3$6,800.000.7513$5,108.94$4,000.00$1,307.29
계산 방법 S
  1. Discount every flow to period 0

    NPV=−10,000(1+0.1)0+3,000(1+0.1)1+4,200(1+0.1)2+6,800(1+0.1)3=1,307.29NPV = \frac{-10{,}000}{(1+0.1)^{0}} + \frac{3{,}000}{(1+0.1)^{1}} + \frac{4{,}200}{(1+0.1)^{2}} + \frac{6{,}800}{(1+0.1)^{3}} = 1{,}307.29

    CF₀ sits at t = 0 and is not discounted. Excel's NPV() treats its first value as arriving at t = 1, so Excel returns this NPV divided by (1 + r).

  2. Internal rate of return

    ∑t=03CFt(1+IRR)t=0  ⇒  IRR=16.340560%\sum_{t=0}^{3} \frac{CF_t}{(1+IRR)^t} = 0 \;\Rightarrow\; IRR = 16.340560\%

    Bracketed on a rate grid, narrowed by bisection, then refined with Newton's method: 16 steps, |NPV| = 8 × 10⁻⁴⁶ at the root.

  3. Modified IRR

    FVin=∑CFt>0CFt(1+0.12)3−t=15,267.20,PVout=∑CFt<0CFt(1+0.1)t=−10,000.00FV_{\text{in}} = \sum_{CF_t>0} CF_t(1+0.12)^{3-t} = 15{,}267.20,\quad PV_{\text{out}} = \sum_{CF_t<0} \frac{CF_t}{(1+0.1)^t} = -10{,}000.00
  4. MIRR

    MIRR=(15,267.2010,000.00)1/3−1=15.1471%MIRR = \left(\frac{15{,}267.20}{10{,}000.00}\right)^{1/3} - 1 = 15.1471\%
  5. Payback

    Cumulative cash turns non-negative after 2.4118 periods, and cumulative present value after 2.7441.

    Within the crossing period, cash is assumed to arrive evenly (linear interpolation).

NPV and IRR calculator (with MIRR and payback) 소개

NPV discounts each period's cash flow back to the start and adds them up: NPV = Σ CF_t ÷ (1 + r)^t, with the first flow at period 0. IRR is the discount rate at which NPV is exactly zero. MIRR instead assumes outflows are funded at a finance rate and inflows reinvested at a reinvestment rate. Payback counts the periods until cumulative cash turns positive, and discounted payback does the same with present values.

With the defaults, an outlay of 10,000 followed by 3,000, 4,200 and 6,800, discounted at 10%, the NPV is 1,307.29 and the IRR is 16.34%. The money comes back after 2.41 periods, or 2.74 periods counting the time value of money. MIRR, at a 10% finance rate and 12% reinvestment rate, is 15.15%.

A period can be a year, a quarter or a month, as long as the rate is for the same period. Flows that change sign more than once can have several IRRs; the result then warns you and MIRR is the better guide.

계산 예제

Four-year project at 10%

Cash flows, period 0 first
-10000, 3000, 4200, 6800
Discount rate (per period)
10%
Finance rate for MIRR
10%
Reinvestment rate for MIRR
12%
Net present value
1,307.29
Internal rate of return
16.34056%
Modified IRR
15.147134%
Payback period
2.41 periods
Discounted payback period
2.74 periods

검증 출처: Python decimal (prec 50) script: textbook NPV, IRR by 300-step bisection, Excel MIRR definition. Microsoft's NPV example gives 1,188.44 for these flows with the first at t = 1; ×1.1 = 1,307.28

Microsoft MIRR example, five years

Cash flows, period 0 first
-120000 39000 30000 21000 37000 46000
Discount rate (per period)
10%
Finance rate for MIRR
10%
Reinvestment rate for MIRR
12%
Modified IRR
12.609413%
Internal rate of return
13.073554%
Payback period
3.81 periods

검증 출처: Microsoft MIRR documentation: 12.61% (five years); Python decimal gives 12.6094130366 and IRR 13.0735539471

Microsoft MIRR example, three years

Cash flows, period 0 first
-120000 39000 30000 21000
Discount rate (per period)
10%
Finance rate for MIRR
10%
Reinvestment rate for MIRR
12%
Modified IRR
-4.804466%
Internal rate of return
-14.405951%

검증 출처: Microsoft MIRR documentation: −4.80% after three years; Python decimal gives −4.8044655250

Microsoft IRR example, five years

Cash flows, period 0 first
-70000 12000 15000 18000 21000 26000
Discount rate (per period)
10%
Finance rate for MIRR
10%
Reinvestment rate for MIRR
12%
Internal rate of return
8.663095%
Net present value
-2,683.31

검증 출처: Microsoft IRR documentation: 8.7% after five years; Python decimal bisection gives 8.6630948037

자주 묻는 질문

How do you calculate NPV?

Divide each cash flow by (1 + r)^t, where t is its period, and add the results, counting the initial outlay at t = 0. At 10%, the flows −10,000, 3,000, 4,200 and 6,800 are worth −10,000 + 2,727.27 + 3,471.07 + 5,108.94 = 1,307.29. A positive NPV means the project earns more than the discount rate.

Why does Excel's NPV function give a different answer?

Excel's NPV treats the first value in its range as arriving at the end of period 1, not at period 0. Putting all four default flows into =NPV(10%, …) returns 1,188.44, which is 1,307.29 ÷ 1.1. To get the usual NPV, leave the initial outlay out of the function and add it separately: =NPV(10%, 3000, 4200, 6800) − 10000.

How is IRR calculated?

IRR is the rate that makes NPV zero, and it has to be found by trial: there is no general formula beyond four periods. For the default flows it is 16.34%. Excel's IRR starts from a 10% guess and returns #NUM! if it has not converged after 20 tries; here the search scans rates from −99.9% to 1,000% and then refines the root.

What is the difference between IRR and MIRR?

IRR implicitly assumes every inflow is reinvested at the IRR itself; MIRR uses a stated reinvestment rate and finance rate, and it always has a single answer. In Microsoft's example, −120,000 followed by 39,000, 30,000, 21,000, 37,000 and 46,000 has an IRR of 13.07% but an MIRR of 12.61% at a 10% finance rate and 12% reinvestment rate.

What is the difference between payback and discounted payback?

Payback counts plain cash; discounted payback counts present values, so it is always longer when the rate is positive. For the default flows, cumulative cash is −2,800 after two periods and the third period's 6,800 covers it in 0.41 of a period, a payback of 2.41. At 10% the discounted payback is 2.74 periods. Neither measure counts cash after the payback point.

“NPV and IRR calculator (with MIRR and payback)”의 정확도는 어느 정도인가요?

정확도는 입력값과 계산 방법의 가정에 따라 달라집니다. 십진 연산은 유효숫자 50자리를 사용하지만, 추정값·수치해석 방법·원본 데이터의 정밀도는 더 낮을 수 있습니다. 표시값을 반올림해도 이러한 한계는 사라지지 않습니다. 독립적인 출처의 풀이와 대조한 계산 예시: 6. 예를 들어 “Four-year project at 10%”은 Python decimal (prec 50) script: textbook NPV, IRR by 300-step bisection, Excel MIRR definition. Microsoft's NPV example gives 1,188.44 for these flows with the first at t = 1; ×1.1 = 1,307.28와 대조해 확인합니다.

이 계산 방법의 출처는 무엇인가요?

Microsoft Excel IRR function; Microsoft Excel MIRR function; Microsoft Excel NPV function; Brealey, Myers & Allen — Principles of Corporate Finance, ch. 5 (NPV and other investment criteria).

이 계산기 소개

NPV=∑t=0nCFt(1+r)t,∑t=0nCFt(1+IRR)t=0,MIRR=(FVinflows−PVoutflows)1/n−1NPV = \sum_{t=0}^{n} \frac{CF_t}{(1+r)^t},\qquad \sum_{t=0}^{n} \frac{CF_t}{(1+IRR)^t} = 0,\qquad MIRR = \left(\frac{FV_{\text{inflows}}}{-PV_{\text{outflows}}}\right)^{1/n} - 1

출처

  1. Microsoft Excel IRR function
  2. Microsoft Excel MIRR function
  3. Microsoft Excel NPV function
  4. Brealey, Myers & Allen — Principles of Corporate Finance, ch. 5 (NPV and other investment criteria)

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