ROI vs IRR vs NPV (Comparison Guide)
Quick answer: ROI, IRR, and NPV are different ways to evaluate investments. ROI measures total return, IRR accounts for timing, and NPV evaluates value in present terms.
Deep dives on this site
Educational use
Start from what is ROI and methodology to see how we present tools.
Explore further
- ROI calculator (homepage)
- What is ROI?
- ROI comparisons — IRR, NPV, payback, and more
- ROI benchmarks
Frequently asked questions
What is the difference between ROI and IRR?
ROI measures total return, while IRR accounts for timing of cash flows.
When should you use NPV instead of ROI?
Use NPV when comparing investments with different time horizons or cash flow patterns.
Which metric is more accurate?
IRR and NPV are generally more accurate for complex investments.