💲 NPV Calculator
How It Works
Calculate net present value from an initial investment and future cash flows. Use NPV Calculator to explore how the main financial inputs change the payment, cost, return, or cash-flow result before making a decision.
The result is most useful when the inputs match the definitions used by this calculator. For this tool, the underlying method is: NPV = Σ(Cash Flow_t / (1+r)^t) − Initial Investment. Compare the output with the worked example, then change one meaningful input at a time to see how the result responds.
Understanding NPV
NPV is a financial calculation that uses the inputs shown above to estimate a payment, amount, rate, return, cost, or planning value. Financial calculations depend on assumptions and may not include every fee, tax, market change, or contractual term. Review the npv inputs and units before relying on the result.
When to Use This Calculator
Use NPV Calculator to explore how the main financial inputs change the payment, cost, return, or cash-flow result before making a decision.
Practical tip: For this NPV Calculator, change one financial assumption at a time—such as the rate, amount, contribution, fee, or tenure shown in the inputs—so you can see which factor drives the result.
Formula
NPV = Σ(Cash Flow_t / (1+r)^t) − Initial Investment
Example
A project is attractive when its NPV is positive at the chosen discount rate.