Use What-If analysis, a built-in calculator in Excel, to solve for the discount rate that equals zero. Take our NPV/IRR example. We’ve calculated an NPV of $472,169 with an IRR of 57% using a ...

In most cases, investors use an IRR calculator or an Excel spreadsheet, which has a built-in function to determine a project's IRR. When calculating IRR, you're solving for an NPV of zero.

Compound annual growth rate (CAGR) and internal rate of return (IRR) both measure investment performance but differ in ...