NPV calculator
It shows whether a project covers its cost plus the return you require. A positive NPV means the project beats that required return.
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How to use it
- Enter annual discount rate, initial investment (today) and yearly cash flows (one per line).
- The result appears straight away and updates as you edit.
- Copy the result, or copy a link that keeps the same values to share it.
How it is calculated
NPV = -initial investment + sum of (cash flow in year t ÷ (1 + discount rate)^t) for years 1 to n.
Example
Inputs: Annual discount rate = 10 %, Initial investment (today) = 10,000. Result: Net present value (NPV): 1,155.66; Present value of cash flows: 11,155.66; Undiscounted total of cash flows: 14,000.00.
Limits and caveats
- Each flow is assumed at the end of its year, with one discount rate for the whole period.
- Excel's NPV function discounts its first value too, so the day-0 amount must be added outside it to match this result.
Questions about this tool
How do I read the result?
A positive NPV means the project earns more than your discount rate, negative means less, and zero means exactly that rate.
Which discount rate should I use?
Usually your cost of capital or the return you could get elsewhere at similar risk. Try a few rates to see how sensitive the result is.
Can I enter negative cash flows?
Yes, put a minus sign for years with extra spending, such as -2000.