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Net Present Value (NPV)

Quick answer

This calculator computes net present value of investment.

  • Simple to use for everyday decisions.
  • Discount-rate guidance.

Figures are estimates from this calculator’s standard formula — adjust the inputs in the tool below for your exact number.

How Does the Net Present Value (NPV) Work?

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

The Net Present Value (NPV) allows you to perform calculations quickly and easily. Simply enter the required values and click the calculate button to get instant results.

  1. 1

    Enter Values

    Enter the required values in the fields below.

  2. 2

    Adjust Settings

    Enter the financial data and business figures.

  3. 3

    View Results

    Click the "Calculate" button to see the result instantly.

FAQs

What discount rate should I pick?

Your weighted average cost of capital, or a hurdle rate 2-3 points above it — commonly 8-12%.

What does a negative NPV mean?

The project earns less than your required rate; positive NPV means value creation above it.