NPV Calculator
Estimate whether a stream of future cash flows creates or destroys value after discounting those cash flows back to today.
Calculate NPV
Calculate net present value (NPV) from an initial investment, discount rate, and a series of future cash flows.
What This NPV Calculator Calculates
Estimate whether a stream of future cash flows creates or destroys value after discounting those cash flows back to today. The calculation runs locally in your browser, so the values you enter are not sent to OfficeCalculator.Net by this tool.
Formula
NPV = −Initial investment + Σ[Cash flowₜ ÷ (1 + discount rate)ᵗ].
How to Use the Calculator
- Enter the requested values using the same time period and units where applicable.
- Review percentages, dates, or currency selections before calculating.
- Select Calculate to generate the main result and supporting metrics.
- Use Copy, Share, or Save Result Image when you need to keep the result.
Worked Example
Example: an initial investment of $10,000 with future cash flows of $3,000, $3,500, $4,000 and $4,500 can be discounted at 10% to estimate today’s net value.
Common Uses
- Compare competing projects using a common discount rate.
- Evaluate investment proposals using projected cash flows.
- Test how a higher or lower required return changes project value.
Important Notes
This calculator is designed for planning, comparison, and educational use. Results depend on the assumptions and values entered. Financial, payroll, statistical, and policy rules can vary by organization and location, so verify important decisions against the relevant records or professional requirements.
Frequently Asked Questions
What does a positive NPV mean?
A positive NPV means the discounted value of future cash flows is greater than the initial investment under the selected discount rate.
What discount rate should I use?
Use a rate appropriate to your required return, financing cost, or risk assumptions. The calculator does not select a rate for you.
Are cash flows assumed to occur at the end of each period?
Yes. The calculator treats the first entered cash flow as occurring at the end of period one.