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NPV Calculator
Calculate Net Present Value for investment decisions
Net Present Value (NPV)
NPV = Sum of (Cash Flow / (1 + r)^t) - Initial Investment
Expected Cash Flows
Year 1
Year 2
Year 3
About NPV Calculator
What is NPV Calculator?
Evaluate investment opportunities using Net Present Value analysis. Enter your initial investment, expected cash flows, and discount rate to determine if a project is worthwhile.
Features & Benefits
- Multiple cash flow periods
- Custom discount rates
- IRR calculation included
- Payback period estimate
- Compare multiple projects
- Visual cash flow timeline
Frequently Asked Questions
- What does NPV tell you?
- NPV shows the present value of future cash flows minus initial investment. Positive NPV = profitable investment. Negative NPV = potential loss.
- What discount rate should I use?
- Typically your cost of capital or required rate of return. Common ranges: 8-15% for businesses, higher for riskier projects.
- What's the difference between NPV and IRR?
- NPV gives a dollar amount of value created. IRR gives the rate of return. Use NPV for comparing projects of different sizes.
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