Net Present Value (NPV) Calculator
Calculate net present value for an investment using discount rate, cash flows, and an optional terminal value.
This calculator is useful for investors evaluating projects using a required return (discount rate) You will typically enter Initial investment, Annual cash flow, Years, Discount rate, Terminal value (optional).
The result represents net present value (npv) in today’s dollars If you are browsing similar tools, start with Investment Calculators or view the full calculators directory.
Also useful: Present Value Calculator, Future Value Calculator.
Net Present Value (NPV)
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How This Calculator Works
This calculator estimates results using standard financial math based on the inputs you provide. It is designed for quick comparisons so you can understand how key variables affect the outcome.
- Enter realistic inputs (amounts, rates, and time periods).
- Review the computed result and any breakdown shown in the tool.
- Enter your inputs, review the result, and adjust one assumption at a time to understand the impact.
For related tools and deeper comparisons, browse Investment Calculators.
Formula
- I₀ = initial investment (cash outflow)
- CF_t = cash flow in year t
- r = discount rate (required return)
- t = year number (1..n)
Example Calculation
Tips for Better Estimates
- Use the best available rate (quote, current APR, or a conservative assumption).
- Model multiple scenarios by changing one input at a time.
- Include fees, taxes, and deductions when they materially affect the total.
- Compare alternatives using the calculators directory or the related calculators section.
Explore Related Tools
Continue with Investment Calculators to compare similar calculators and validate your assumptions across different scenarios.