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FINANCIAL

Net Present Value Calculator

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Discount a sequence of end-of-period cash flows and subtract the initial outlay.

Your inputs

USD
%

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Your result

FINANCIAL

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Next steps

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On this page How it works & practical examples

How to use the Net Present Value Calculator

Use a rate per cash-flow period and signed net flows in one currency. The first listed amount arrives at the end of period one; the initial outlay is separate.

The calculation

NPV = −initial + Σ[CFt/(1+r)^t]

Worked example

A $1,000 outlay and three $400 year-end cash flows at 10% give NPV −$5.26.

Assumptions and limits

Regular periods only. No rate, future flow, risk or investment decision is inferred; taxes and fees are included only through your net cash flows.

Common questions

Which inputs should I use?

Use a rate per cash-flow period and signed net flows in one currency. The first listed amount arrives at the end of period one; the initial outlay is separate.

What does the result exclude?

Regular periods only. No rate, future flow, risk or investment decision is inferred; taxes and fees are included only through your net cash flows.

References

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