Net Present Value Calculator
Discounted value of future cash flows.
Enter your values
Results update instantly as you type — no submit needed.
Results
- Net present value
- $17,395.86
- Present value of inflows
- $97,395.86
- Verdict
- Accept — creates value
- Profitability index
- 1.22
- Undiscounted total
- $130,000.00
Quick answer
NPV discounts future cash flows at your required return; a positive NPV means the project creates value.
NPV = Σ CFt/(1+r)^t − C0
How to use the Net Present Value Calculator
- 1Enter the upfront cost.
- 2Set your discount rate or cost of capital.
- 3List each year's expected cash flow.
Frequently asked questions
What discount rate should I use?
Your weighted average cost of capital, or the return of the next best alternative.
NPV or IRR?
NPV is more reliable for ranking projects of different sizes.