NPV Calculator
Discount a stream of future cash flows back to today's dollars, net off the up-front cost, and see whether a project or investment creates value. This free online financial calculator runs entirely in your browser — no signup, no data sent anywhere.
Inputs
Results
Interactive Chart
Drag to pan, scroll to zoom, shift+drag to box-zoom. Combined view of balance, principal paid, interest paid, and total paid.
Amortization Schedule
| Period | Payment | Principal | Interest | Balance |
|---|---|---|---|---|
| Click Calculate to generate the schedule. | ||||
How It Works (Formula & Method)
Each future cash flow is discounted back to the present using the formula PV = CF ÷ (1 + r)t, where r is the discount rate and t is the year the cash flow arrives. NPV is the sum of every discounted cash flow minus the initial investment.
The profitability index divides the present value of the inflows by the initial investment — a value above 1.0 signals a value-creating project. Enter one cash flow per year, separated by commas; enter the up-front cost separately as a positive Initial Investment.
Worked Example
Below is a worked example using the calculator's default values. The same numbers are pre-filled in the form above so you can press Calculate and see the result without typing anything.
Inputs used:
- Initial Investment ($): 100000
- Discount Rate (%/yr): 10
- Annual Cash Flows (comma-separated, one per year): 30000, 35000, 40000, 45000, 50000
With these inputs, the calculator computes the metrics shown in the Results panel. Change any value and press Calculate again to see how the result responds — the live widget and the chart both update instantly.
About the NPV Calculator
Net present value (NPV) is the single most important number in capital budgeting. It answers one question: after accounting for the time value of money, does this investment add more value than it costs? A positive NPV means the discounted future cash flows exceed the up-front outlay, so the project is expected to increase wealth. A negative NPV means the opposite.
Tips & Considerations
The discount rate should reflect the risk of the cash flows — often a company's weighted average cost of capital (WACC) or your own required rate of return. Higher rates penalize distant cash flows more heavily. Compare NPV alongside IRR and payback period rather than relying on any single metric.
Frequently Asked Questions
What does a positive NPV mean?
A positive NPV means the present value of the expected future cash flows is greater than the initial investment. In principle the project is expected to add value and is worth pursuing, all else being equal.
How is NPV different from IRR?
NPV gives a dollar amount of value created at a specific discount rate. IRR gives the single discount rate at which NPV equals zero. NPV is generally preferred when comparing mutually exclusive projects because IRR can be misleading with unconventional cash flows.
What discount rate should I use?
Use a rate that reflects the risk and opportunity cost of the capital — commonly the weighted average cost of capital (WACC) for a firm, or your personal required rate of return for an individual investment.
What does the NPV Calculator compute?
The NPV Calculator takes 3 input values and returns 3 results. Calculate the net present value of an investment by discounting a series of future cash flows at your required rate of return, with a profitability index and interactive chart.
Reviewed against: IRS publications, Consumer Financial Protection Bureau (consumerfinance.gov), and current published market data. Results are estimates for educational use only — not financial, tax, or legal advice.