NPV Calculator
NPV of comma-separated annual cash flows (year 0 first).
Inputs
%
Result
NPV$1,838.67
About the NPV Calculator
The NPV (Net Present Value) Calculator discounts a stream of future cash flows back to today's dollars using a chosen discount rate. Positive NPV projects add value; negative NPV projects destroy value.
Calculation method
Sum the present value of each cash flow. Time 0 is typically the initial investment (negative).
NPV = Σ CF_t / (1 + r)^tHow to use this calculator
- Enter your discount rate (cost of capital or required return).
- Enter each cash flow in order, starting with year 0.
- See total NPV — accept the project if NPV > 0.
Example
At a 10% discount rate, cash flows of −$10,000, +$3,000, +$4,000, +$5,000, +$2,000 have an NPV of about $947.
Frequently asked questions
What discount rate should I use?
Use your weighted average cost of capital (WACC) for corporate projects, your required return for personal investments, or the rate on the best alternative use of the money.
Why is NPV better than IRR?
NPV measures dollars added; IRR measures a rate. NPV always ranks projects correctly, whereas IRR can rank mutually exclusive projects wrong when scales differ.
What happens if NPV is exactly zero?
The project earns exactly the discount rate — neither adds nor destroys value at that hurdle.
Disclaimer: This calculator is for informational and educational purposes only and does not constitute financial, tax, or legal advice. Consult a qualified professional for decisions specific to your situation.