NPV Calculator
Find out whether a project’s future cash flows are worth more than what it costs today.
Interactive calculator — Coming Soon
Initial Investment
20,000 (example)
Discount Rate
10% (example)
Cash Flows — Years 1–3
8,000 / 8,000 / 8,000 (example)
Net Present Value
-105.18
Slightly negative — at a 10% discount rate this project is marginally value-destroying.
How the NPV Calculator Works
Formula: NPV = Σ [Cash Flowt ÷ (1 + r)t] − Initial Investment
Each future cash flow is discounted back to today’s value using the discount rate, then all discounted flows are summed and compared against the upfront cost. A positive NPV means the project is expected to create value; a negative NPV, like the example above, means the return doesn’t clear the discount rate.
This tool is provided for general informational purposes only and does not constitute financial advice. Verify results independently before making financial decisions.