NPV calculator (net present value)
Enter the initial investment as a negative cash flow in year 0, followed by the cash flows you expect at the end of each year. The calculator discounts each flow and adds them up.
%
Net present value
11,933.51
Positive NPV: at this discount rate, the cash flows are worth more than they cost.
| Year | Cash flow | Discount factor | Present value |
|---|---|---|---|
| 0 | -250,000.00 | 1.0000 | -250,000.00 |
| 1 | 70,000.00 | 0.9174 | 64,220.18 |
| 2 | 85,000.00 | 0.8417 | 71,542.80 |
| 3 | 90,000.00 | 0.7722 | 69,496.51 |
| 4 | 80,000.00 | 0.7084 | 56,674.02 |
How it's calculated
NPV = Σ CFₜ ÷ (1 + r)ᵗ, t = 0 … n
- CFₜ
- cash flow at the end of year t (year 0 = today)
- r
- discount rate (cost of capital)
Assumptions
- Cash flows arrive at the end of each period; year 0 is today and is not discounted.
- One constant discount rate applies to every period.
Limitations
- Spreadsheet NPV() discounts its first value by one period; this calculator follows the textbook definition with year 0 undiscounted.
- Uneven dates need XNPV-style daily discounting, which this calculator does not do.
For education and planning. Results are estimates, not financial advice.