Corporate finance
NPV Calculator
Value future cash flows today using a chosen discount rate.
Results
A clear summary of your calculation.
Enter values and press Calculate to see an explanation.
INTERPRETATION
What does this mean?
Positive NPV indicates value above the chosen discount rate; zero meets it exactly; negative NPV falls short.
Read the learning guide →FORMULA
Formula
NPV is the sum of every cash flow from time zero onward, discounted to today.
WORKED EXAMPLE
Example
- Enter an initial investment of 1,000; the tool treats it as a time-zero outflow.
- Enter 600 for year one and year two, then set the discount rate to 10%.
- NPV is about 41.32, leaving a positive modeled value after applying the 10% hurdle rate.
Frequently asked questions
How is the initial investment entered?
Enter a positive outlay; the calculator treats it as a negative cash flow at time zero.
What does the discount rate represent?
It represents a required return or opportunity cost, chosen by the user.
Does positive NPV mean I should invest?
Not necessarily. Forecasts and discount rates are uncertain, and other risks and constraints matter.