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Net Present Value (NPV) Calculator

Finance
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Calculates the net present value (NPV) of an investment, considering initial investment, cash flows, and discount rate.

How To Use

How to use this calculator

Start with your values, or try a preset.

Step 1

Enter Initial Investment, Discount Rate, Cash Flow Year 1, Cash Flow Year 2, Cash Flow Year 3, Cash Flow Year 4, and Cash Flow Year 5 in the units shown.

Step 2

Read Present Value Year 5, Present Value Year 4, Present Value Year 3, Present Value Year 2, Present Value Year 1, and Net Present Value (NPV) in the results panel. Results update as you change the inputs.

Step 3

Choose a preset to load an example, then adjust the values for your situation.

Worked Examples

Example calculations

See the inputs and their calculated results.

Scenario 1

Initial Investment: -10,000 USD; Discount Rate: 5 %; Cash Flow Year 1: 2,000 USD; Cash Flow Year 2: 3,000 USD; Cash Flow Year 3: 4,000 USD; Cash Flow Year 4: 5,000 USD; Cash Flow Year 5: 6,000 USD

Present Value Year 5: 4,701.156999 USD; Present Value Year 4: 4,113.512374 USD; Present Value Year 3: 3,455.350394 USD; Present Value Year 2: 2,721.088435 USD; Present Value Year 1: 1,904.761905 USD; Net Present Value (NPV): 6,895.870107 USD

Scenario 2

Initial Investment: -50,000 USD; Discount Rate: 8 %; Cash Flow Year 1: 10,000 USD; Cash Flow Year 2: 10,000 USD; Cash Flow Year 3: 15,000 USD; Cash Flow Year 4: 15,000 USD; Cash Flow Year 5: 20,000 USD

Present Value Year 5: 13,611.66394 USD; Present Value Year 4: 11,025.44779 USD; Present Value Year 3: 11,907.48362 USD; Present Value Year 2: 8,573.388203 USD; Present Value Year 1: 9,259.259259 USD; Net Present Value (NPV): 4,377.24281 USD

Scenario 3

Initial Investment: -20,000 USD; Discount Rate: 10 %; Cash Flow Year 1: 5,000 USD; Cash Flow Year 2: 6,000 USD; Cash Flow Year 3: 7,000 USD; Cash Flow Year 4: 8,000 USD; Cash Flow Year 5: 9,000 USD

Present Value Year 5: 5,588.291908 USD; Present Value Year 4: 5,464.107643 USD; Present Value Year 3: 5,259.203606 USD; Present Value Year 2: 4,958.677686 USD; Present Value Year 1: 4,545.454545 USD; Net Present Value (NPV): 5,815.735388 USD

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Important

Treat this output as a planning estimate and confirm rates, tax rules, and contract terms before making financial decisions.