Net Present Value (NPV) Calculator
Evaluate whether an investment is worthwhile by discounting a series of future cash flows back to today's dollars. Enter your initial investment, expected cash flows for each year, and your discount rate.
Net Present Value
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Initial Investment—
Year 1 PV—
Year 2 PV—
Year 3 PV—
Year 4 PV—
Year 5 PV—
About this calculator
Calculate the net present value of a series of uneven, user-entered cash flows using your chosen discount rate.
Frequently Asked Questions
What does a positive NPV mean?
A positive NPV means the projected discounted cash flows exceed the initial investment, suggesting the investment could be profitable.
How do I choose a discount rate?
The discount rate typically reflects your required rate of return or cost of capital. Higher risk investments generally use a higher rate.
Can I use this for more than 5 years of cash flows?
This calculator supports 5 years of cash flows. For longer projections, you can group or average years, or run it multiple times.