NPV Calculator
Evaluate investments by discounting future cash flows to today.
Project value: —
The discount rate reflects risk and your required return.
Example
Annual cash flow: $500
Duration: 3 years
Discount rate: 10%
→ NPV ≈ +$243
Understand this calculator
This NPV calculator helps you evaluate whether a project creates value. To understand how NPV works, when to use it, and how to interpret results, read the full concept explanation.
Learn more about Net Present Value (NPV)What does this NPV calculator do?
It discounts future cash flows to their present value and compares them to the initial investment to determine value creation.
Why use NPV?
NPV accounts for time, risk and opportunity cost, making it one of the most reliable decision tools for long-term investments.
How does it work?
Each future cash flow is discounted using the chosen rate. The sum of discounted cash flows minus the initial investment gives the NPV.
Frequently Asked Questions
What does a positive NPV mean?
A positive NPV means the project creates value at the chosen discount rate.
How do I choose the discount rate?
It should reflect risk and your minimum acceptable return.
Is NPV better than ROI?
NPV considers time and risk, while ROI shows overall profitability. They are often used together.