Investment Growth Calculator

This calculator estimates whether an investment's future cash flows are worth more than what you put in today, using two standard measures: net present value (NPV) and internal rate of return (IRR).

FAQ

What is net present value (NPV)?

It's the sum of all future cash flows from an investment, each converted into today's euros using a discount rate, minus the initial amount invested. A positive NPV means the discounted cash flows exceed the outlay at that discount rate.

What is internal rate of return (IRR)?

It's the discount rate at which the investment's NPV would be exactly zero. Comparing the IRR to your chosen discount rate is one way to gauge how the cash flows stack up against that required return.

What does the payback period tell me?

It's how many years of (undiscounted) cash flow it takes to recover the initial investment — a simple timing measure, separate from NPV and IRR.

Can I include a terminal value?

Yes, you can add a lump-sum terminal value (for example, an expected resale value) in the final year, and it's discounted back to today's euros along with the regular cash flows.

Does a positive NPV guarantee a good investment?

No. NPV and IRR are maths on the cash flows and discount rate you enter. They do not account for risks that aren't in your inputs, and this tool does not predict real-world investment outcomes.

Illustration only. Not financial advice.