What is net present value (NPV)?

Net Present Value (NPV) Calculator

Calculate net present value (NPV) of an investment by discounting future cash flows to today's dollars.

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Initial investment ($)

Discount rate (%)

Year 1 cash flow ($)

Year 2 cash flow ($)

Year 3 cash flow ($)

Year 4 cash flow ($)

About This Calculator

Net present value (NPV) is the most widely used method for evaluating investment decisions. It discounts each future cash flow back to today's value using a discount rate, then subtracts the initial investment. A positive NPV means the investment creates value; negative means it destroys value.

Estimates only — not financial, tax, legal, or investment advice. Verify important results with a qualified professional before making decisions.

NPV = −investment + CF₁/(1+r)¹ + CF₂/(1+r)² + ... + CFₙ/(1+r)ⁿ; total PV of cash flows = sum of all discounted CFs (before subtracting investment); profitability index = total PV ÷ initial investment