Net Present Value Calculator
Discounted value of future cash flows.
Enter your values
Enter the initial investment in $.
Enter the discount rate in %.
Enter the yearly cash flows you are working with.
Results update instantly as you type — no submit needed. Your values are remembered on this device, and the shareable link reopens the calculator with exactly these numbers.
- Net present value
- $17,395.86
- Present value of inflows
- $97,395.86
- Verdict
- Accept — creates value
- Profitability index
- 1.22
- Undiscounted total
- $130,000.00
Quick answer
NPV discounts future cash flows at your required return; a positive NPV means the project creates value.
NPV = Σ CFt/(1+r)^t − C0
At a glance
| What it does | Discounted value of future cash flows. |
|---|---|
| Category | Finance |
| Inputs needed | Initial investment, Discount rate, Yearly cash flows |
| Main output | Net present value |
| Formula | NPV = Σ CFt/(1+r)^t − C0 |
| Cost | Free — no sign-up, no download |
How to use the Net Present Value Calculator
- 1Enter the upfront cost.
- 2Set your discount rate or cost of capital.
- 3List each year's expected cash flow.
Inputs explained
- Initial investment($)
- Enter the initial investment in $.
- Discount rate(%)
- Enter the discount rate in %.
- Yearly cash flows
- Enter the yearly cash flows you are working with.
Worked example
Using the values the calculator loads with:
Inputs
- Initial investment80000 $
- Discount rate10 %
- Yearly cash flows20000, 25000, 30000, 30000, 25000
Results
- Net present value$17,395.86
- Present value of inflows$97,395.86
- VerdictAccept — creates value
- Profitability index1.22
- Undiscounted total$130,000.00
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.
What do I need to enter into the Net Present Value Calculator?
Just 3 values: initial investment, discount rate, yearly cash flows. Every field starts with a realistic example, so you can change one number at a time and watch the result update instantly.
How does the Net Present Value Calculator work out the answer?
NPV discounts future cash flows at your required return; a positive NPV means the project creates value. It applies the formula NPV = Σ CFt/(1+r)^t − C0 and shows the working so you can check each step by hand.
Is the Net Present Value Calculator free, and do I need an account?
It is completely free with no sign-up, no download and no usage limit. Everything is calculated in your browser, so the numbers you type never leave your device.
Results are estimates for general information. For medical, legal, structural or financial decisions, confirm with a qualified professional.