Business Financeโฑ 3 min

NPV Calculator

Calculate Net Present Value (NPV) of an investment to determine if it creates or destroys value.

Free โ€ข Accurate โ€ข Instant Results

NPV Inputs

$
$
%
Years

Net Present Value

โœ…

$13,724

Total Cash Inflow

๐Ÿ’ฐ

$150,000

Initial Investment

๐Ÿฆ

$100,000

Discount Rate

๐Ÿ“Š

10.00%

๐Ÿค–

AI Insights

Personalized analysis based on your inputs

โœ…

Positive NPV โ€” Worth Pursuing

The project's discounted cash flows exceed the initial investment, suggesting it creates value at this discount rate.

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Formula Used

Net Present Value

NPV = โˆ’Initial + ฮฃ [CFโ‚œ / (1+r)^t]

Variables

CFโ‚œ= Cash flow in year t
r= Discount rate

Example

โˆ’$100,000 + 5 years of $30,000 at 10% discount rate = positive NPV

Frequently Asked Questions

A positive NPV means the project is expected to generate more value than it costs, after accounting for the time value of money โ€” generally a 'go' signal.

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Disclaimer: This calculator is for informational and educational purposes only. Results are estimates based on inputs you provide. They are not financial, tax, investment, or legal advice. Consult a qualified financial professional before making financial decisions. Actual results may vary based on market conditions, tax laws, and individual circumstances.