NPV Calculator
Calculate the Net Present Value (NPV) of an investment by entering a discount rate and projected cash flows.
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How to Use the NPV Calculator
- Enter the required values in the input fields.
- The result is calculated and displayed automatically.
- Copy the result or review the detailed breakdown.
- Adjust inputs to explore different scenarios.
Casos de Uso
- •Performing quick calculations without manual math.
- •Verifying results from other sources or calculations.
- •Learning new concepts with an interactive calculation tool.
- •Saving time with instant automated computations.
Perguntas Frequentes
What is Net Present Value (NPV)?
NPV is the difference between the present value of cash inflows and the initial investment. A positive NPV means the investment adds value; negative means it destroys value.
What is the NPV formula?
NPV = -C₀ + CF₁/(1+r)¹ + CF₂/(1+r)² + ... + CFₙ/(1+r)ⁿ, where C₀ is the initial investment, CF is cash flow, r is discount rate, and n is the period.
What discount rate should I use?
Use your cost of capital (WACC) or required rate of return. Common values are 8–15% for business projects.
What does a positive NPV mean?
A positive NPV means the investment generates more value than it costs at the given discount rate. It is generally considered a good investment.