Finance calculator
NPV Calculator
Calculate net present value from an initial investment, discount rate, and up to five yearly cash flows.
Formula
Net present value
NPV depends heavily on forecast cash flows and discount rate assumptions.
NPV = sum(cash flow in year t / (1 + discount rate)^t) - initial investment
Discount future cash flows to today, then subtract the upfront investment.
FAQs
What does a positive NPV mean?+
A positive NPV means the discounted cash inflows exceed the entered initial investment.
Can cash flows be negative?+
Yes. Enter a negative cash flow for a year with expected outflow.
How does the NPV Calculator calculate the result?+
It uses the Net present value: NPV = sum(cash flow in year t / (1 + discount rate)^t) - initial investment. Discount future cash flows to today, then subtract the upfront investment.
What information do I need to use the NPV Calculator?+
Calculate net present value from an initial investment, discount rate, and up to five yearly cash flows.
How accurate is the NPV Calculator?+
NPV Calculator applies the formula and assumptions shown on this page. Results may be rounded for readability, so verify changing rates, thresholds, medical guidance, or legal rules with the cited source or a qualified professional.
What should I check before using the NPV Calculator result?+
Check that the units, dates, rates, and assumptions match your situation. Change one input at a time to understand which values have the largest effect on the result.
Finance guide
How to use the NPV Calculator
Calculate net present value from an initial investment, discount rate, and up to five yearly cash flows. The page also explains the net present value and shows a practical example: Discount future cash flows to today, then subtract the upfront investment.
- 1
Enter your details
Enter an initial investment, discount rate, and up to five yearly cash flows, then complete any other fields shown in the calculator.
- 2
Check the calculation
Review the result alongside the net present value: NPV = sum(cash flow in year t / (1 + discount rate)^t) - initial investment.
- 3
Compare scenarios
Change one or more inputs to see how they affect the NPV Calculator result before you use the estimate.
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