Net Present Value (NPV) Calculator
Enter your initial investment, discount rate and expected cash flows for up to 5 years to calculate the Net Present Value.
Net Present Value (NPV) Calculator
Calculate the Net Present Value (NPV) of an investment with up to 5 years of projected cash flows.
NPV sums the present value of each future cash flow (discounted back at your chosen rate) and subtracts the initial investment, giving a single figure that tells you whether a project is expected to add value.
Example
- With the default values shown above, this calculator returns: PV of Year 1 ≈ USD 13,888.89; PV of Year 2 ≈ USD 12,860.08; PV of Year 3 ≈ USD 11,907.48; PV of Year 4 ≈ USD 11,025.45; PV of Year 5 ≈ USD 10,208.75; Net Present Value (NPV) ≈ USD 9,890.65.
Frequently Asked Questions
What does a positive or negative NPV mean?
A positive NPV means the investment is expected to generate more value than its cost at your chosen discount rate, making it worthwhile. A negative NPV suggests the investment would destroy value at that rate.
What discount rate should I use?
Often your required rate of return, cost of capital, or Weighted Average Cost of Capital (WACC) — use the WACC Calculator if you need to compute it.
What if my project runs for fewer than 5 years?
Enter 0 for any years beyond your project's actual length.