Calculate net present value, present value of cash flows, discounted cash flows, profitability index, and investment return. Use this NPV calculator to estimate whether an investment or project is worth more than its upfront cost.
Standard NPV:
Enter an initial investment, discount rate, and future cash flows to calculate net present value.
NPV with terminal value:
Add a final terminal value to the last year of the project or investment.
Equal annual cash flow:
Use one repeating annual cash flow amount for a set number of years.
Target NPV cash flow:
Estimate the equal annual cash flow needed to reach a target NPV.
An NPV calculator helps compare projects, investments, equipment purchases, rental improvements, business expansions, and cash-flow opportunities by adjusting future cash flows to present value.
It is especially useful when future cash flows happen over several years and money today is worth more than money later.
Your result shows net present value, present value of cash flows, initial investment, discount rate, profitability index, and discounted cash flow details. A positive NPV may suggest the investment creates value above the required return, while a negative NPV may suggest the investment does not meet that target.
NPV stands for net present value. It estimates the value of future cash flows in today’s dollars after subtracting the initial investment.
Discount each future cash flow back to present value, add those present values together, then subtract the initial investment.
A positive NPV generally means the discounted value of future cash flows is greater than the upfront cost, based on the discount rate used.
The discount rate is the required return, risk adjustment, or cost of capital used to convert future cash flows into present value.