MasterTool

NPV Calculator

Calculate npv from your own entered figures.

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Currency: Amounts are calculated in the currency you select; this site does not convert between currencies and does not use live exchange rates.

What this tool does

Calculate npv from your own entered figures. Cash flows are assumed to occur at yearly intervals starting today; a positive NPV beats the discount rate, a negative one does not.

How to use the NPV Calculator

  1. Enter or select cash flows (one per line, first = initial investment, negative).
  2. Enter or select discount rate (%).
  3. Read the calculated result; change any measurement to compare alternatives.

Formula

NPV = Σ CFt/(1+r)^t for t = 0, 1, 2, … — the first cash flow is at t = 0 (usually the initial investment, entered negative)
flows
Cash flows (one per line, first = initial investment, negative)
rate
Discount rate (%)

Cash flows are assumed to occur at yearly intervals starting today; a positive NPV beats the discount rate, a negative one does not.

Worked example

For npv calculator, the following measurements illustrate the exact method: Cash flows (one per line, first = initial investment, negative): -1000 500 500 500; Discount rate (%): 10.

Inputs

  • Cash flows (one per line, first = initial investment, negative)-1000 500 500 500
  • Discount rate (%)10

Result

  • Net present value (NPV)$243.43
  • Sum of undiscounted cash flows$500.00
  • Initial cash flow (t = 0)-$1,000.00

Results explained

Net present value (NPV)
Net present value (NPV) from the formula above. Cash flows are assumed to occur at yearly intervals starting today; a positive NPV beats the discount rate, a negative one does not.
Sum of undiscounted cash flows
Sum of undiscounted cash flows from the formula above. Cash flows are assumed to occur at yearly intervals starting today; a positive NPV beats the discount rate, a negative one does not.
Initial cash flow (t = 0)
Initial cash flow (t = 0) from the formula above. Cash flows are assumed to occur at yearly intervals starting today; a positive NPV beats the discount rate, a negative one does not.

Frequently asked questions

NPV = Σ CFt/(1+r)^t for t = 0, 1, 2, … — the first cash flow is at t = 0 (usually the initial investment, entered negative)

Cash flows are assumed to occur at yearly intervals starting today; a positive NPV beats the discount rate, a negative one does not.

No. All numbers are entered by you or come from the dated reference table shown on this page; calculations run locally.

This is an estimate, not financial, tax or legal advice. Verify the inputs and output with official sources and a qualified professional.

Check period consistency, currency, percentage inputs and the assumptions: Cash flows are assumed to occur at yearly intervals starting today; a positive NPV beats the discount rate, a negative one does not.