Capital budgeting: NPV, IRR, MIRR, PI, payback
Add as many years as you need. Also NFV, discounted payback and EAA.
%
The return the project must earn, usually the firm’s WACC. Used for NPV, PI and discounted payback.Cash flows
Year 0 is the initial investment (enter it as negative). Add as many years as you need.
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MIRR rates
%
MIRR discounts outflows to year 0 at this borrowing rate.%
MIRR compounds inflows to the final year at this rate.Calculate
Turn on a measure to calculate it; press it again to turn it off. With Show the working on, each result shows its formula with your numbers.
About this calculator
Evaluate a project from its cash flows. Enter the initial investment as a negative year-0 cash flow, then each year's expected cash flow, and press a button to calculate NPV, IRR, MIRR, payback, discounted payback or the profitability index. Each result shows the formula with your numbers.
Formula
NPV = Σt=0n CFt(1 + r)t; IRR solves NPV = 0; MIRR = (TV of inflowsPV of outflows)1/n − 1; PI = PV of future cash flowsinitial investment
- Accept a project when NPV > 0, IRR and MIRR exceed the cost of capital, and PI > 1.
- When cash flows change sign more than once, IRR may not be unique; use NPV or MIRR.
- Use EAA to compare projects with different lives.
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