NPV Calculator
Net Present Value of a project or investment based on yearly cash flows.
Yearly cash inflows
Net Present Value
$48,033
Positive NPV — the project creates value at the given discount rate.
| Year | Cash flow | Discounted | Cumulative NPV |
|---|---|---|---|
| 0 | $-100,000 | $-100,000 | $-100,000 |
| 1 | $30,000 | $27,273 | $-72,727 |
| 2 | $35,000 | $28,926 | $-43,802 |
| 3 | $40,000 | $30,053 | $-13,749 |
| 4 | $45,000 | $30,736 | $16,987 |
| 5 | $50,000 | $31,046 | $48,033 |
Net Present Value (NPV) Calculator
The NPV Calculator evaluates whether an investment or project is financially worthwhile. It discounts all future cash flows back to today using a required rate of return and compares the total against the upfront cost.
Decision rule
- NPV > 0 — accept the project; it earns more than the required return.
- NPV = 0 — break-even at the required return.
- NPV < 0 — reject; it earns less than alternative uses of capital.
Choosing the discount rate
For corporates, the discount rate is usually the weighted average cost of capital (WACC). For personal investments, use the return you could earn on a comparable-risk alternative — often the long-term return of an index fund (10–12% for equities, 5–7% for bonds).