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Finance Calculators
NPV (Net Present Value) Calculator
Calculate the net present value (NPV) of an investment given its cost, expected annual cash flow and discount rate.
Net present value (NPV)
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Present value of cash flows
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About the NPV (Net Present Value) Calculator
Net present value (NPV) discounts a series of future cash flows back to today's dollars and subtracts the upfront investment, showing whether a project is expected to create or destroy value.
Formula: NPV = ∑ [Cash Flowt ÷ (1 + r)t] − Initial Investment, summed over each year t.
A positive NPV means the investment is expected to earn more than the discount rate (your required return); a negative NPV means it falls short and would destroy value at that rate.
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