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NPV Calculator

Calculate net present value from an initial investment, discount rate, and a series of periodic cash flows.

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Calculator guide

How to use the NPV Calculator

Calculate net present value from an initial investment, discount rate, and a series of periodic cash flows. Enter the requested values and select Calculate. The result and supporting values are produced locally in your browser.

Formula

NPV = −Initial Investment + Σ(Cash Flowₜ ÷ (1 + r)ᵗ)

Worked example

With a $100,000 initial investment, an 8% discount rate, and cash flows of $30,000, $35,000, $40,000, and $45,000, NPV is about $22,614.27.

What to keep in mind

  • Cash flows are assumed to occur at the end of equally spaced periods, with the discount rate expressed per period.
  • NPV depends heavily on the cash-flow forecast and discount-rate assumption.

Methodology

This calculator uses deterministic arithmetic and performs the calculation locally in your browser. Verify assumptions, units, and source values for your specific use case.

Review standard: Level B · Industry formula. How calculator reviews work.

Frequently asked questions

What does this calculator calculate?

Calculate net present value from an initial investment, discount rate, and a series of periodic cash flows.

How is the result calculated?

NPV = −Initial Investment + Σ(Cash Flowₜ ÷ (1 + r)ᵗ).

Can I use the result for an important decision?

Use the result as a calculation aid and verify the inputs, assumptions, and applicable professional or regulatory requirements before relying on it for an important decision.

Does CalculateMeasure store the values I enter?

The calculator performs its arithmetic in your browser. The calculator itself does not need to send your entered values to a server to produce the result.