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Free Online NPV Calculator

Calculate the Net Present Value of future cash flows to evaluate investment profitability. Enter discount rate and projected cash flows to make informed investment decisions.

NPV Calculator
Calculate Net Present Value of future cash flows to evaluate investment profitability.

Year 1

Year 2

Year 3

Year 4

Year 5

Net Present Value

$48032.61

Total Cash Flows

$200,000

Profitability Index

1.480

✓ This investment is profitable (positive NPV)

How to Use NPV Calculator

  1. 1

    Enter the initial investment amount (negative cash flow)

  2. 2

    Add expected future cash flows for each period

  3. 3

    Set the discount rate and see the NPV result

Frequently Asked Questions

What is Net Present Value (NPV)?

NPV is the difference between the present value of future cash inflows and the initial investment. A positive NPV means the investment is expected to generate more value than it costs — it is profitable.

What discount rate should I use?

The discount rate typically reflects your required rate of return or the weighted average cost of capital (WACC). Common choices are 8-12% for business projects, or the risk-free rate plus a risk premium.

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