
Originally published: 12/12/2022 14:24
Publication number: ELQ-36365-1
View all versions & Certificate
Publication number: ELQ-36365-1
View all versions & Certificate

IRR and NPV calculator
Our plug and play template simplifies the process for users to quickly and accurately calculate IRR and NPV for a business

We are a team of well-qualified and experienced corporate finance professionals with special expertise in designing and building investor-ready financial models suitable for organizations’ business grFollow
Description
All companies and businesses have a common goal, and that is to expand and generate increasing profit and returns on the investments that are made into them. The old financial parlance “Go big or go home” is something that is at the core of many decisions taken by those running companies. However, expansion and diversification or investing in new stocks come with their own risks. Many critical decisions can hinge on the expected performance of investments.
In such cases, it becomes necessary to evaluate the potential and performance of the investment or expansion opportunity in question. The best industry practices require the use of ROI (Return on investment) and IRR (Internal rate of return) to calculate the profitability of an investment. While most businesses use ROI as a standard metric many of them don’t use IRR simply because it can be very confusing to calculate.
We simplify the process of calculating the IRR for any investment, diversification or expansion by giving our customers an easy-to-use Excel-based template. Our IRR template will calculate the returns based on inputs from the user and also provide predicted earnings, charts and metrics.
Our template can be used to:
Make stock decisions
Assess the performance of stocks and investments
Make management decisions on mergers and acquisitions
Evaluating insurance schemes and payouts
Analyzing investment returns
Real estate investments and returns calculations
IRR analyses can be done in conjunction with a view of a company’s weighted average cost of capital (WACC) and NPV calculations
All companies and businesses have a common goal, and that is to expand and generate increasing profit and returns on the investments that are made into them. The old financial parlance “Go big or go home” is something that is at the core of many decisions taken by those running companies. However, expansion and diversification or investing in new stocks come with their own risks. Many critical decisions can hinge on the expected performance of investments.
In such cases, it becomes necessary to evaluate the potential and performance of the investment or expansion opportunity in question. The best industry practices require the use of ROI (Return on investment) and IRR (Internal rate of return) to calculate the profitability of an investment. While most businesses use ROI as a standard metric many of them don’t use IRR simply because it can be very confusing to calculate.
We simplify the process of calculating the IRR for any investment, diversification or expansion by giving our customers an easy-to-use Excel-based template. Our IRR template will calculate the returns based on inputs from the user and also provide predicted earnings, charts and metrics.
Our template can be used to:
Make stock decisions
Assess the performance of stocks and investments
Make management decisions on mergers and acquisitions
Evaluating insurance schemes and payouts
Analyzing investment returns
Real estate investments and returns calculations
IRR analyses can be done in conjunction with a view of a company’s weighted average cost of capital (WACC) and NPV calculations
This Best Practice includes
Basic Excel model