What is the NPV Calculator?
The npv calculator is a free online tool that helps you work out npv quickly and accurately. It uses the standard formula NPV = -initial + sum( CF_t / (1+r)^t ) and shows the result instantly as you type, along with a full breakdown so you can see exactly how the answer was reached.
How to use this calculator
- Enter the initial investment.
- Enter yearly inflows separated by commas.
- Enter the discount rate.
- See the NPV.
Formula used
NPV = -initial + sum( CF_t / (1+r)^t )Explanation of each input
- Initial investment (outflow) โ the initial investment (outflow) used in the calculation.
- Yearly cash inflows (comma separated) โ the yearly cash inflows (comma separated) used in the calculation.
- Discount rate (%) โ the discount rate used in the calculation.
Understanding your result
- Net present value โ the calculated net present value.
- PV of inflows โ the calculated pv of inflows.
Step-by-step calculation
For the example values -100000 then 30k,40k,50k,60k at 10%:
- Apply the formula:
NPV = -initial + sum( CF_t / (1+r)^t ) - Substitute the values: discount each year
- Result: NPV is positive => worthwhile
Worked example
| Inputs | -100000 then 30k,40k,50k,60k at 10% |
|---|---|
| Working | discount each year |
| Result | NPV is positive => worthwhile |
Benefits and practical uses
This calculator saves you time and reduces errors when you need npv. It is useful for students, professionals and anyone who wants a fast, reliable answer without manual calculation. Results update instantly, work in your browser and can be copied or shared in one click.
Assumptions and limitations
- End-of-year cash flows; constant discount rate.
Frequently asked questions
What does a positive NPV mean?
The project earns more than the discount rate and is expected to add value.
Disclaimer: This calculator provides estimates for general information only and is not financial advice. Returns are illustrative and not guaranteed; consult a qualified financial adviser before making decisions.