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Investment Calculator: NPV, IRR and Payback — Excel Template

Evaluate a project over 10 years: cash flows, NPV, IRR, profitability index, simple and discounted payback period, scenarios and a chart.

Investment Calculator: NPV, IRR and Payback — Excel Template
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Blank template + filled-in example · Excel 2007+, LibreOffice, Google Sheets

What it's for

Before you invest in opening a new location, buying equipment or launching a project, it's worth checking whether it will pay back and when. The calculator takes the initial investment, discount rate and tax, and, by year, revenue, costs and additional investment. From these it builds cash flows, calculates NPV, IRR, profitability index and payback periods, and compares pessimistic, base and optimistic scenarios.

What's inside

  • "Inputs": project, discount rate, income tax, initial investment and 10 years of revenue, costs and additional investment.
  • "Calculation": cash flows by year, discounting, cumulative and cumulative discounted cash flow, NPV, IRR, PI, payback periods, a verdict in words and a chart.
  • "Scenarios": three cases with factors for revenue and costs, NPV, IRR and payback for each, and a chart.
  • "Instructions": how to use it and how the metrics are calculated.

Who it's for

Entrepreneurs evaluating the payback of a new project, students and analysts, small business finance managers, and anyone comparing investments in equipment, a franchise or property.

Compatibility

Excel 2007 and later, LibreOffice. No macros. Rates and parameters are in the inputs, so you can adjust them. The calculation is indicative.

The file is in English.

Questions and answers

What is NPV and how do I read it?
NPV is the sum of future cash flows discounted to today's money, minus the investment. If NPV is above zero, the project earns more than your required return. If it is below zero, it earns less.
What discount rate should I use?
The return you require from the investment: for example, a savings account rate plus a risk premium. Small businesses often use 15–25%.
What is the difference between simple and discounted payback?
Simple payback ignores the fact that money loses value over time; discounted payback takes it into account. That is why the discounted period is always longer.
Does the calculation include inflation and depreciation?
No, the model is simplified. You can build inflation into the annual growth of revenue and costs, and tax is set as a rate. It is a tool for an initial assessment, not a business plan.
Do I need macros?
No. The file works in Excel 2007 and later and in LibreOffice; all calculations use ordinary formulas.