Advanced NPV Calculator
Calculate the Net Present Value of your investment projects
Investment Parameters
Results
Net Present Value (NPV)
Investment evaluation will appear here
Cash Flow Visualization
Calculation Breakdown
Year | Cash Flow | Discount Factor | Present Value |
---|---|---|---|
Net Present Value (NPV) |
Enter your investment parameters and click "Calculate NPV" to see results
NPV Calculator Guide
What is NPV?
Net Present Value (NPV) is a financial metric that calculates the difference between the present value of cash inflows and the present value of cash outflows over a period of time. It's used to evaluate the profitability of an investment or project.
Formula
NPV = -Initial Investment + Σ [CFt / (1 + r)t]
Where:
CFt = Cash flow at time t
r = Discount rate
t = Time period
How to Interpret NPV
- NPV > 0: The investment is expected to add value. The project may be accepted.
- NPV = 0: The investment is expected to neither gain nor lose value. The decision should be based on other factors.
- NPV < 0: The investment is expected to lose value. The project should generally be rejected.
Tips for Using This Calculator
- Enter the initial investment as a positive number
- Use the "Advanced Mode" for varying annual cash flows
- Enter cash flows as positive for inflows
- The discount rate should reflect your required rate of return
Feature | Details |
---|---|
Price | Free |
Rendering | Client-Side Rendering |
Language | JavaScript |
Paywall | No |
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