Finance & Money
NPV Calculator - Calculate net present value (NPV) of an investment.
Calculate net present value (NPV) of an investment.
Formulas and edge cases are reviewed against authoritative references before publication. For methodology, editorial standards, or corrections, use the links below.
Frequently asked questions
What is NPV?
NPV measures the profitability of an investment by calculating the present value of all future cash flows minus the initial investment.
What discount rate should I use?
Use your required rate of return, cost of capital, or the rate you could earn elsewhere (opportunity cost).
Is positive NPV always good?
A positive NPV means the investment returns more than your discount rate, making it generally worthwhile.
Related tools
About this tool
Inputs
- Initial Investment
- Discount Rate
- Cash Flows by Year
- Remove
- Add year
- Year
- N/A
- Not reached
- Invest
- Do not invest
- Break even
Results
- Net Present Value
- IRR
- Payback Period
- Investment Decision
Figuring out calculate net present value (npv) of an investment no longer requires manual arithmetic. The NPV Calculator walks you through the math step by step. Fill in initial investment, discount rate, cash flows by year, remove, add year, year, n/a, not reached, invest, do not invest and break even and the tool handles the rest, showing you net present value, irr, payback period and investment decision within moments. Understanding the time value of money is essential for sound financial planning. Having a dedicated tool to calculate net present value (npv) of an investment saves time you would otherwise spend searching for formulas or setting up a spreadsheet.
NPV measures the profitability of an investment by calculating the present value of all future cash flows minus the initial investment. Factor in inflation when projecting long- term growth; a nominal rate of 7% with 3% inflation yields roughly 4% real growth. Change one variable while holding the others constant to isolate its impact. This sensitivity check is often more informative than a single result. The underlying math typically involves compound growth: FV = PV × (1 + r/n)^(n×t).