Net Present Value (NPV) Calculator

Calculate the Net Present Value of Your Investment

Input Fields

Initial Investment

C0

$

Enter the initial investment amount

Discount Rate (%)

r

%

Enter the discount rate (in %)

Cash Flows (comma separated)Enter the expected cash flows for each period (comma separated)

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Your Results

Net Present Value (NPV)

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Net Present Value (NPV) Formula

$$NPV = \sum \frac{C_t}{(1 + r)^t} – I$$

Where:

• $$NPV$$ – Net Present Value
• $$C_t$$ – Cash flow at time t
• $$r$$ – Discount rate (or required rate of return)
• $$t$$ – Time period (in years, months, etc.)
• $$I$$ – Initial investment

The formula calculates the present value of future cash flows, discounted by the required rate of return, and subtracts the initial investment.

Net Present Value (NPV) is a critical financial metric used to evaluate the profitability of an investment, considering both the inflows and outflows of cash over time. A positive NPV means the investment is likely to be profitable, while a negative NPV suggests the investment will result in a loss. This calculator allows you to make informed investment decisions by comparing the present value of future cash flows with the initial cost.