About the NPV Calculator
Net present value, or NPV, answers the question: after allowing for the time value of money, is this investment worth it? It adds up all the future cash flows after discounting each back to today at your required rate of return, then subtracts the money you put in. A positive NPV means the project beats your required rate. Enter the rate and a list of cash flows, starting with period 0. Type the discount rate and the cash flows, one for each period and the net present value appears at once, with a few related figures underneath, and you can copy the result with one tap. The sums run in your browser, so nothing you enter is uploaded.
Updated October 2026
How to use the NPV Calculator
- 1Enter the discount rate and the cash flows, one for each period.
- 2Pick the units or options from the menus if the net present value tool offers them.
- 3Read the net present value in the large result box.
- 4Look at the extra rows for related figures.
- 5Press Copy result to keep the answer.
When you need the net present value
Businesses use NPV to decide whether to buy a machine, open a shop or launch a product. Investors use it to compare opportunities with different timing, and homeowners use it to compare, say, solar panels with the savings on bills.
The discount rate is the key choice. It should reflect the return you could get elsewhere with similar risk. A higher rate lowers the NPV, and the project with the highest NPV is generally the best use of money, if the investments are of similar size.
How the net present value is worked out
NPV = CF0 + CF1 ÷ (1 + r) + CF2 ÷ (1 + r)² + … where CF0 is the cash flow now, usually negative, and r is the discount rate per period. At a rate of 10 percent, an investment of 1,000 that returns 300, 400, 500 and 200 over four years has present values of 272.73, 330.58, 375.66 and 136.60. The total is 1,115.57, so the NPV is 115.57 and the profitability index is 1.116.
Every answer on this page comes from that one rule, so you can check any result by hand with a calculator. The figures shown underneath, such as other units, are conversions of the same answer.
- Any number of periods
- Present value of each flow
- Profitability index
Mistakes to avoid with net present value
Be consistent: if the rate is yearly, the cash flows must be yearly. Put money going out as negative numbers. NPV depends on your estimates of future cash flows, which are uncertain, so test a few rates and a lower case.
On phone and computer
On a phone, type into the boxes one after another and read the net present value underneath; Copy result puts it on the clipboard for a message or a note. On a computer the inputs sit on the left and the answer on the right, so you can change one figure and watch the net present value move. The npv calculator works the same on both. Compare projects with IRR Calculator and Payback Period Calculator, and use ROI Calculator for a simple return. Present Value and NPV Calculator handles an uneven set of cash flows.
Features
- Match the rate to the period
- Outflows are negative
- Test different rates
- Clear messages when the net present value inputs make no sense
- Copy the result with one tap
- Private: nothing is uploaded
Frequently asked questions
How do I calculate net present value?
NPV = CF0 + CF1 ÷ (1 + r) + CF2 ÷ (1 + r)² + … where CF0 is the cash flow now, usually negative, and r is the discount rate per period. At a rate of 10 percent, an investment of 1,000 that returns 300, 400, 500 and 200 over four years has present values of 272.73, 330.58, 375.66 and 136.60. The total is 1,115.57, so the NPV is 115.57 and the profitability index is 1.116.
What is the formula for net present value?
NPV = CF0 + CF1 ÷ (1 + r) + CF2 ÷ (1 + r)² + … where CF0 is the cash flow now, usually negative, and r is the discount rate per period. The npv calculator applies it exactly and rounds only the displayed answer to six significant figures.
What is a good NPV?
Any positive number means the investment earns more than your required return. The larger the better, compared with the amount invested.
How is NPV different from IRR?
IRR is the discount rate at which NPV is zero. NPV tells you the value created at a given rate, which is more reliable for comparing projects.
What is the profitability index?
The present value of the future flows divided by the initial outlay. A value above 1 means the project pays back more than it costs.
Is this npv calculator free and private?
Yes. It is free, needs no account and runs in your browser, so the numbers you type are not uploaded or stored.