NPV Calculator
Discount a series of cash flows at a stated rate to find net present value.
Guide
What is net present value?
Net present value (NPV) discounts each cash flow back to today at a chosen rate and sums the results. A positive NPV means the cash flows are worth more than the discount rate implies; a negative NPV means they are worth less.
Formula
NPV = Sum of Cash flow at time t ÷ (1 + Discount rate ÷ 100) ^ t for t from 0 through the last period. The period-0 cash flow is not discounted.
Worked example
Cash flows of -1,000, 400, 400, and 400 at a 10% discount rate produce an NPV of about -5.26.
Assumptions and limitations
The Calculator assumes evenly spaced periods, a constant discount rate, and cash flows entered in order starting at period 0. It does not model mid-period timing, taxes, or changing discount rates.
Common questions
How is this different from present value?
Present value discounts one future amount. NPV discounts a full series. Should the initial investment be negative? Yes. Enter outflows as negative values and inflows as positive values.
Methodology
The Calculator parses comma-separated cash flows, applies exact decimal discounting, and rounds only the displayed NPV.