Net Present Value (NPV) Calculator
Find the net present value of an investment's cash flows at a discount rate, with its IRR and net cash flow.
Change the values and press Calculate to work out your own figures.
Enter the initial investment, the discount rate and each year's cash flow.
| Year | Cash flow | Present value |
|---|---|---|
| 1 | $1,300.00 | $1,181.82 |
| 2 | $1,300.00 | $1,074.38 |
| 3 | $1,300.00 | $976.71 |
| 4 | $1,300.00 | $887.92 |
| 5 | $1,300.00 | $807.20 |
Show the working
- NPV = −investment + Σ cash flow ÷ (1 + r)^t
How to use it
Enter the initial investment, the discount rate and each year's cash flow.
Enter amounts without commas or with them; rates are percentages (5 for 5%). Negative amounts are allowed where a sign means money paid out.
Key facts
NPV = −investment + Σ cash flowₜ ÷ (1 + r)^t
Reading NPV
A positive NPV means the investment earns more than the discount rate; negative, less.
Questions
What is the NPV of −$5,000 then $1,300 a year for 5 years at 10%?
−$71.98.
Formulas
NPV = −investment + Σ cash flowₜ ÷ (1 + r)^t
Sources
Limitations
- Results are estimates for planning, not offers or financial advice; lenders and banks may round, count days or time payments differently.
- Rates are nominal annual rates compounded as you choose; payments at a different frequency use the equivalent periodic rate.