Browse calculatorsValuation and Return Calculators
NPV Calculator
Discount expected cash inflows and subtract the initial investment.
NPV Calculator
Enter your numbers and the result updates straight away.
Outputs
Planning estimate only. Verify assumptions before making a financial decision.
A $100,000 investment with five annual $30,000 inflows has an NPV of about $19,781 at an 8% discount rate.
How this calculation works
Each end-of-year cash flow is discounted separately using the entered required rate. Their present values are summed and the time-zero investment is deducted.
How to interpret the result
Positive NPV means the modeled return exceeds the discount rate; it does not prove the forecasts or rate are correct. Run downside scenarios and keep nominal versus real assumptions consistent.
Limitations
Results are educational planning estimates. They do not include every tax, legal, accounting, financing, or business-specific consideration and are not professional advice.
Sources and further reading
Formula and example
A $100,000 investment with five annual $30,000 inflows has an NPV of about $19,781 at an 8% discount rate.
Common use cases
- Compare projects with different cash-flow timing.
- Test a purchase price.
- Evaluate projects at a required return.
NPV Calculator FAQ
How is NPV calculated?
Each end-of-year cash flow is discounted separately using the entered required rate. Their present values are summed and the time-zero investment is deducted.
What should I check before using the result?
Positive NPV means the modeled return exceeds the discount rate; it does not prove the forecasts or rate are correct. Run downside scenarios and keep nominal versus real assumptions consistent.
Does this calculator provide financial advice?
No. It applies the stated formula to your inputs for educational planning. Validate definitions, timing, accounting treatment, and assumptions before acting.