You need to evaluate investments.
One calculator isn’t enough.
You need a 360° view.
You need integrated analysis.
ROI. NPV. DCF. Integrated analysis. Your 360° view.
This guide shows you how.
Calculator integration. Comprehensive analysis. Decision framework. Your clarity.
Read this. Use all tools. Get complete view.
Key Takeaways
- Start with ROI—use ROI Calculator to see return percentage quickly
- Calculate NPV—use Net Present Value Calculator to see if investment creates value
- Calculate DCF—use DCF Calculator to see true intrinsic value
- Compare results—compare ROI, NPV, and DCF to get complete picture
- Make decision—use all three metrics together for confident investment decision
Table of Contents
Why 360° View Matters
360° view enables complete analysis.
What happens with one metric:
- Analysis is incomplete
- Decisions are based on partial information
- Mistakes are made
- Opportunities are missed
What happens with 360° view:
- Analysis is complete
- Decisions are based on full information
- Mistakes are avoided
- Opportunities are captured
The reality: 360° view enables smart decisions.
Starting with ROI
Start with ROI for quick assessment:
Calculate ROI
Calculate it:
- Use our ROI Calculator
- Enter investment amount
- Enter expected return
- See ROI percentage
Why it matters: ROI provides quick return assessment.
Understand ROI
What ROI shows:
- Return percentage
- Profitability indicator
- Quick comparison tool
- Initial screening metric
Why it matters: Understanding enables quick decisions.
Use for Screening
How to use:
- Screen opportunities quickly
- Compare multiple investments
- Identify best returns
- Filter out poor options
Why it matters: Screening saves time.
Pro tip: Start with ROI. Use our ROI Calculator for quick assessment. ROI provides initial screening.
Calculating NPV
Calculate NPV for value assessment:
Calculate NPV
Calculate it:
- Use our Net Present Value Calculator
- Enter initial investment
- Enter cash flows
- Enter discount rate
- See NPV result
Why it matters: NPV shows value creation.
Understand NPV
What NPV shows:
- Value creation or destruction
- Time value of money
- Absolute dollar value
- Investment worthiness
Why it matters: Understanding enables value assessment.
Use for Deep Analysis
How to use:
- Assess value creation
- Compare to alternatives
- Evaluate time value
- Make value-based decisions
Why it matters: Deep analysis improves decisions.
Pro tip: Calculate NPV. Use our Net Present Value Calculator for value assessment. NPV shows value creation.
Calculating DCF
Calculate DCF for intrinsic value:
Calculate DCF
Calculate it:
- Use our DCF Calculator
- Enter cash flow projections
- Enter discount rate
- Enter terminal value
- See present value
Why it matters: DCF shows intrinsic value.
Understand DCF
What DCF shows:
- True intrinsic value
- Future cash flow value
- Business valuation
- Investment worth
Why it matters: Understanding enables valuation.
Use for Valuation
How to use:
- Value the opportunity
- Compare to investment needed
- Assess fair value
- Make valuation-based decisions
Why it matters: Valuation enables smart decisions.
Pro tip: Calculate DCF. Use our DCF Calculator for intrinsic value. DCF shows true worth.
Comparing Results
Compare all three metrics:
ROI vs. NPV vs. DCF
What to compare:
- ROI shows return percentage
- NPV shows value creation
- DCF shows intrinsic value
- All three together show complete picture
Why it matters: Comparison enables complete analysis.
Look for Consistency
What consistency to look for:
- All metrics positive
- All metrics align
- No contradictions
- Clear signal
Why it matters: Consistency builds confidence.
Identify Discrepancies
What discrepancies to identify:
- Metrics don’t align
- Contradictory signals
- Need for deeper analysis
- Potential issues
Why it matters: Discrepancy identification enables caution.
Pro tip: Compare results. ROI, NPV, DCF. Look for consistency, identify discrepancies. Comparison enables complete analysis.
Making Decision
Use all three metrics for decision:
When All Metrics Agree
What agreement means:
- All metrics positive
- Strong investment signal
- High confidence
- Clear go decision
Why it matters: Agreement enables confident decisions.
When Metrics Disagree
What disagreement means:
- Need deeper analysis
- Potential issues
- Lower confidence
- More caution needed
Why it matters: Disagreement requires caution.
Decision Framework
What framework to use:
- All positive: Strong go
- Mostly positive: Conditional go
- Mixed signals: Defer or investigate
- Mostly negative: No
Why it matters: Framework enables consistent decisions.
Pro tip: Make decision. Use all three metrics together. Agreement enables confidence, disagreement requires caution. See our investment triage framework guide for ranking.
Your Next Steps
Calculate all metrics. Compare results. Make decision.
This Week:
- Review this guide
- Calculate ROI for opportunities
- Calculate NPV for opportunities
- Calculate DCF for opportunities
This Month:
- Compare all three metrics
- Look for consistency
- Make investment decisions
- Track results
Going Forward:
- Use all three tools together
- Refine decision framework
- Improve analysis
- Make better decisions
Need help? Check out our ROI Calculator for return percentage, our Net Present Value Calculator for value creation, our DCF Calculator for intrinsic value, our investment triage framework guide for ranking, and our decision memo template guide for comprehensive analysis.
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FAQs - Frequently Asked Questions About How to Use Our ROI, NPV, and DCF Tools Together for a 360° Investment View
Why should I use ROI, NPV, and DCF calculators together instead of just one?
Each metric measures a different dimension of an investment. ROI shows return percentage, NPV shows value creation, and DCF shows intrinsic value, so using all three gives you a complete picture.
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ROI gives you a quick percentage return for initial screening, but it does not account for the time value of money or show whether the investment actually creates value.
NPV factors in the time value of money and shows whether the investment adds or destroys value in absolute dollar terms, which ROI alone cannot reveal.
DCF provides the true intrinsic value by discounting all future cash flows back to present value, giving you a fair price for the investment. Combining all three prevents blind spots.
How should I use ROI as the first step in investment analysis?
Use ROI as a quick screening tool. Enter your investment amount and expected return to see the return percentage, then filter out options with poor returns before doing deeper analysis.
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ROI is the fastest metric to calculate, requiring only the investment amount and expected return, making it ideal for initial screening of multiple opportunities.
Compare ROI across multiple investments to identify which have the best potential returns, then advance only the most promising options to the more detailed NPV and DCF analysis.
Remember that ROI is a simplified metric. High ROI does not always mean a good investment because it does not account for risk, time value of money, or cash flow timing.
What does NPV tell me that ROI cannot about an investment opportunity?
NPV shows whether an investment creates or destroys value in absolute dollar terms by factoring in the time value of money and the timing of cash flows.
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While ROI gives you a percentage, NPV translates that into real dollar value. A positive NPV means the investment creates wealth beyond what you would earn at your discount rate.
NPV accounts for when cash flows arrive, not just how much. $100,000 received next year is worth less than $100,000 received today, which ROI does not capture.
NPV enables direct comparison between investments of different sizes and durations, giving you an absolute measure of value creation that percentage-based ROI cannot provide.
When should I use DCF analysis and what does it reveal beyond NPV?
Use DCF to determine the true intrinsic value of an investment or business by discounting projected future cash flows and terminal value back to present value.
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DCF analysis is most useful for valuing ongoing investments or businesses where you need to project multiple years of cash flows and determine what those future earnings are worth today.
While NPV shows whether a specific investment creates value, DCF provides a full business or asset valuation that helps you assess whether the price being asked is fair.
DCF requires entering cash flow projections, a discount rate, and a terminal value, making it the most detailed of the three tools but also the most comprehensive for valuation decisions.
What does it mean when all three metrics agree versus when they disagree?
When all three are positive and aligned, it is a strong investment signal with high confidence. When they disagree, it signals potential issues that need deeper investigation.
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All metrics positive means strong go. ROI shows good returns, NPV confirms value creation, and DCF validates fair pricing, giving you high confidence in the investment.
If metrics disagree, for example high ROI but negative NPV, it may mean the timing of cash flows is unfavorable or your discount rate assumptions need review.
Mixed signals should trigger deeper analysis rather than an immediate decision. Investigate the assumptions behind each calculation, stress-test your inputs, and understand why the metrics are giving different answers.
What decision framework should I follow after running all three investment calculators?
If all three are positive, it is a strong go. If mostly positive, proceed with conditions. If mixed, defer and investigate further. If mostly negative, pass on the opportunity.
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Start by reviewing whether ROI meets your minimum return threshold, then check if NPV is positive (value-creating), and finally verify that DCF shows the investment price is at or below fair value.
Look for consistency. All three metrics aligning positively builds confidence, while any contradictions between them highlight areas where your assumptions may need refinement.
Use this systematic framework for every investment decision to ensure you are evaluating opportunities objectively rather than relying on gut feel or a single metric.
Sources & Additional Information
This guide provides general information about using ROI, NPV, and DCF tools together. Your specific situation may require different considerations.
For ROI calculation, see our ROI Calculator.
For NPV calculation, see our Net Present Value Calculator.
For DCF valuation, see our DCF Calculator.
For investment triage, see our Investment Triage Framework Guide.
Consult with professionals for advice specific to your situation.
