About the Present Value and NPV Calculator
Present Value and NPV Calculator tells you what future money is worth today. It has three modes. One future amount discounts a single sum you will receive after some years, with yearly, half-yearly, quarterly, monthly or daily compounding. Regular payments values an annuity, payments of the same size each period, either paid at the end of each period or at the start, and also shows what the same payment would be worth if it went on for ever. Cash flows (NPV) takes a list of flows, the first one now and usually negative, and returns the net present value, a table of discount factors and the profitability index. All results update as you type, and the tool runs in your browser without storing anything.
Updated September 2026
How to use the Present Value and NPV Calculator
- 1Choose One future amount, Regular payments or Cash flows (NPV).
- 2Enter the amount or payments, the time and the discount rate.
- 3For cash flows, type one number per line, starting with the amount you pay now as a negative number.
- 4Pick the compounding or, for payments, whether they come at the start of each period.
- 5Read the present value or NPV, and use the table to see how each cash flow is discounted.
Why future money is worth less
A sum of money today can be saved or invested and grow, so it is worth more than the same sum later. Inflation also makes a future amount buy less. Discounting turns future amounts into today's terms, which lets you compare choices that pay out at different times, such as taking a lump sum now or an income over ten years.
The discount rate is the key input. A higher rate makes the future look less valuable. It should reflect what you could earn elsewhere with a similar level of risk.
Which mode to use
- One future amount: a maturity payout, an inheritance or a sum due on a fixed date.
- Regular payments: pensions, leases, rent and loan or bond payments of a fixed size.
- Cash flows: projects and investments with uneven flows, where you want the NPV.
- Use the annuity due option when payments come at the start of each period.
Reading an NPV result
In the cash flow mode, the first flow is period zero, usually the cost. Every later flow is discounted by the factor shown in the table, and the sum of the last column is the NPV. If the NPV is positive at your required rate, the project passes. If it is negative, the project returns less than that rate, and if it is zero, it earns exactly the rate.
NPV depends on the accuracy of your forecasts. Small changes in the rate or in the later flows can change the answer, so test optimistic and cautious cases before deciding.
Related tools
Future Value Calculator works forward in time, IRR Calculator finds the rate at which NPV is zero, Compound Interest Calculator shows growth with deposits, Inflation Calculator shows buying power over time and CAGR Calculator turns a start and end value into a yearly rate.
Features
- Present value of a lump sum with five compounding options
- Present value of an annuity, ordinary or due
- Value if payments went on for ever
- NPV of up to 60 cash flows with a discount table
- Profitability index
- Currency symbol picker
- Numbers read from lines, commas or spaces
- Runs in your browser
Frequently asked questions
What is present value?
Present value is the worth today of money you will get in the future. Because money can earn interest, 10,000 in five years is worth less than 10,000 now. At 6 percent a year, 10,000 in five years has a present value of about 7,473.
How is present value calculated?
Divide the future amount by one plus the rate raised to the number of periods: PV = FV ÷ (1 + r)^n. With compounding more than once a year, divide the rate by the number of periods per year and multiply the years by the same number.
What is NPV?
Net present value adds up the present values of all cash flows, including the money you put in at the start. A positive NPV means the project returns more than the discount rate demands, and a negative one means it returns less. It is widely used to compare investments and projects.
What discount rate should I use?
Use the return you could get from an alternative of similar risk, or the cost of the money you are using. For a business project it is often the company's required rate of return, and for personal decisions it may be the interest on a savings account or a loan. Try a few rates to see how sensitive the result is.
What is the difference between an ordinary annuity and an annuity due?
An ordinary annuity pays at the end of each period, such as a loan repayment or bond interest. An annuity due pays at the start of each period, such as rent or an insurance premium. An annuity due is worth more, by a factor of one plus the rate per period.
What is the profitability index?
It is the present value of the future inflows divided by the initial investment. A value above 1 means the project creates value at your discount rate. It helps to rank projects when money is limited.
Does the tool handle uneven cash flows?
Yes, in the cash flow mode. Enter each period's amount on its own line, with negative numbers for money paid out. The periods are assumed to be evenly spaced, so use the same length for each, such as years, and enter the yearly rate.