Net Present Value Calculator
Calculate NPV of an investment by discounting future cash flows back to present value.
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Net Present Value
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Total Cash Flows
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Decision
Recent Calculations
What Is Net Present Value?
NPV calculates the present value of all future cash flows minus the initial investment. A positive NPV means the investment creates value.
Formula
NPV = -C₀ + Σ(Cₜ / (1+r)ᵗ)Example
Investing $50,000 with cash flows of $15K, $18K, $22K, $25K at 10% discount rate gives NPV of $12,355.
Frequently Asked Questions
What discount rate should I use?
Use your required rate of return or cost of capital. Common range is 8-15%.
What if NPV is negative?
A negative NPV means the investment destroys value at the given discount rate. The cash flows aren't worth the initial investment.