NPV Calculator (Net Present Value)
Free online NPV (Net Present Value) calculator. Enter an initial investment, a discount rate, and yearly cash flows to compute NPV, present value of inflows, and profitability index. Includes a full year-by-year discounting breakdown. 100% client-side.
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What is NPV Calculator (Net Present Value)?
NPV (Net Present Value) is a core capital-budgeting metric that measures the value an investment creates by discounting all future cash flows back to today using a chosen discount rate. This free online NPV calculator applies the standard discounted cash flow (DCF) formula: NPV equals the negative of the initial investment plus the sum of each future cash flow divided by (1 + discount rate) raised to its period. Enter your upfront cost, your cost of capital, and the cash flows you expect each year to instantly see the NPV, the present value of inflows, the profitability index, and a transparent year-by-year discounting table. Everything runs 100% client-side in your browser.
Key Benefits
- Accounts for the time value of money so future cash is valued correctly
- Gives a clear accept/reject signal: positive NPV means value creation
- Includes the Profitability Index for ranking projects under capital constraints
- Transparent year-by-year table builds intuition about how discounting works
- Private and offline-capable; no financial data leaves your device
Common Use Cases
- •Comparing competing projects to decide which to fund with limited capital
- •Evaluating equipment purchases, new product launches, or expansion plans
- •Valuing a business or asset using projected future cash flows (DCF valuation)
- •Teaching or learning the mechanics of discounted cash flow analysis
- •Stress-testing an investment under different discount-rate assumptions
How to Calculate Net Present Value (NPV)
- Enter the initial investment: Type the upfront cost (Year 0 outflow) of the project or asset.
- Set the discount rate: Enter your cost of capital or required rate of return as a percentage.
- Add yearly cash flows: List the expected cash inflow for each year; add or remove years as needed.
- Read the NPV: A positive NPV means the project adds value; a negative NPV suggests rejecting it.
Key Features
- Standard NPV formula using discounted cash flow (DCF) methodology
- Dynamic cash-flow rows for projects of any duration
- Profitability Index shown alongside NPV for go/no-go decisions
- Year-by-year discounting table with explicit discount factors
- Copy a full calculation summary for reports and spreadsheets