Investment Analysis

You can use this calculator to calculate the net present value, future value, net profit, and the internal rate of return on the cash flow of an investment.

To open this calculator, click Calculators in the toolbar, and then click Other Investment > Investment Analysis in the left panel.

You can export the data as a PDF file or clear all data that you entered. For more information, see Financial calculators.

In the grid, enter cash going into the investment as positive amounts and enter withdrawals or proceeds from the investment as negative amounts.

In order to compare investment options over a similar period of time, keep in mind that excess funds do not sit idle; those funds earn interest. This calculator assumes that funds withdrawn from the investment cash flow are automatically deposited in a reinvestment account.

Example

An investment of $100,000 produces a cash flow of $5,000, $50,000 and $100,000 at various dates in the future. To calculate the analysis to a specific date, enter the end date as the last row in the input grid and enter zero for the amount.

Discount rate for net present value of cash flow: 8.00%

Rate of return on reinvestment account: 7.00%

Deposit 1/1/2012 100,000
Withdrawal 6/1/2012 -5,000
Withdrawal 1/1/2013 -50,000
Withdrawal 1/1/2014 -100,000
End date 1/1/2015 0

  • Net present value on investment cash flow: $36,855.42

  • Profit: $82,127.76

  • Internal rate of return on investment cash flow: 31.73%

  • Internal rate of return on investment plus reinvestment: 16.16%

Note: The internal rate of return will not calculate unless there is at least one positive and one negative amount in the investment cash flow. When a cash flow alternates between positive and negative more than once, the internal rate of return can produce multiple correct answers. For this reason, the IRR will not calculate if the cash flow has a change in sign more than once. Also, the IRR will not calculate for values greater than 1,000%.

Internal notes


6440

Contact us

Was this article helpful?