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NPV Calculator

Calculate the net present value (NPV) of an investment from the discount rate, initial cost and future cash flows. Includes IRR and profitability index.

Net present value
2,381.38
Present value of cash flows
12,381.38
Initial investment
10,000.00
Profitability index
1.238
IRR
18.03%

A positive NPV means the project earns more than the discount rate.

PeriodCash flowPresent value
13,000.002,777.78
24,000.003,429.36
35,000.003,969.16
43,000.002,205.09

Is the investment worth it today?

Net present value adds up every future cash flow discounted back to today, then subtracts the upfront cost. A positive NPV means the investment earns more than your discount rate. Spend $10,000 to receive $3,000, $4,000, $5,000 and $3,000 over four years, and at an 8% discount rate the NPV is $2,381: the project beats an 8% return. The table shows the present value of each cash flow, and the IRR is the rate at which NPV would be zero.

How to use it

  1. 1

    Enter the discount rate

    Your required return per period.

  2. 2

    Add the investment and cash flows

    The upfront cost, then one cash flow per period.

  3. 3

    Read the NPV

    NPV, present value of the flows, IRR and profitability index.

Frequently asked questions

What is the NPV formula?

NPV = Σ CFₜ ÷ (1 + r)^t − initial investment, for t = 1 to n.

What does a negative NPV mean?

The investment returns less than the discount rate, so it destroys value at that rate.

Is this the same as Excel's NPV?

Excel's NPV discounts every value starting from period 1, so you subtract the initial investment yourself. This tool does that for you.

Is my data stored?

No. Everything runs in your browser.

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