NPV Calculator
Work out net present value from an initial investment and a series of period cash flows, with a discount factor breakdown and a profitability index.
Investment and rate
Period cash flows
Paste several values at once, one per line, into any field to fill the list. Everything runs in your browser.
Discount schedule
| Period | Cash flow | Discount factor | Discounted value |
|---|---|---|---|
| 0 (now) | -10,000.00 | 1.0000 | -10,000.00 |
| Year 1 | +3,000.00 | 0.9259 | +2,777.78 |
| Year 2 | +4,000.00 | 0.8573 | +3,429.36 |
| Year 3 | +5,000.00 | 0.7938 | +3,969.16 |
| Year 4 | +3,000.00 | 0.7350 | +2,205.09 |
Assumes each cash flow lands at the end of its period and uses one constant discount rate throughout.
How to calculate net present value
Enter the initial investment and discount rate
Type the upfront cost of the project and the discount rate per period, then choose whether periods are years or months.
Add each period’s cash flow
Fill in the cash flow expected in each period. Use Add period for more rows, or paste a column of values copied from a spreadsheet into any field.
Read the net present value
The result updates instantly and shows whether the project clears the discount rate hurdle, along with the profitability index.
Check the discount schedule
The per-period table breaks down the raw cash flow, the discount factor, and the discounted value for every period, including the initial outlay.
Why use this tool
Instant net present value
Net present value recalculates the moment you change the investment, the rate, or any cash flow, with no button to press.
Full discount schedule
A per-period table shows the raw cash flow, the discount factor, and the discounted value for period zero through the last period entered.
Profitability index
Alongside net present value, the tool reports the profitability index, the ratio of discounted future cash flow to the initial investment.
Editable cash flow list
Add or remove periods freely, and paste a column of values copied from a spreadsheet into any field to fill several rows at once.
Years or months
Switch the period label between years and months so the schedule reads correctly for the timeframe you are modelling.
Private by design
Every figure you enter is calculated in your browser. Nothing is uploaded or stored.
About this tool
This tool works out the net present value of a project or investment: an initial cost paid now, followed by a series of cash flows expected in future periods, all discounted back to today’s value at a chosen rate. A positive net present value means the project is expected to clear the discount rate hurdle; a negative one means it falls short. The headline figure updates as soon as the investment, the rate, or any cash flow changes.
The discount schedule underneath shows the working for every period: the raw cash flow you entered, the discount factor applied to it, and the resulting discounted value, so nothing about the calculation is hidden in a single number. The profitability index sits alongside it as a ratio, useful for comparing projects of different sizes rather than just looking at the dollar figure. Cash flow rows can be added, removed, or edited freely, and pasting a column of numbers copied from a spreadsheet into any field fills the list in one go.
Everything runs in your browser, so the figures you enter are never uploaded or stored. To solve for the rate that makes net present value exactly zero instead of entering one, use the irr calculator; for a simpler return-on-investment figure without period-by-period discounting, use the roi calculator; and to work out a compound annual growth rate between two values, use the cagr calculator.
Frequently asked questions
- How is net present value calculated?
- Each period’s cash flow is divided by (1 + discount rate) raised to the power of the period number, then all the discounted values are summed and the initial investment is subtracted. A positive result means the project is worth more than its cost at that discount rate.
- What does the discount rate represent?
- It is the rate of return you could otherwise earn on your money, sometimes called the hurdle rate or cost of capital. Entering a higher discount rate lowers the present value of every future cash flow, which is why riskier projects are usually tested against a higher rate.
- What is the profitability index?
- It is the discounted value of the future cash flows divided by the initial investment. A profitability index above one means net present value is positive, and it is useful for ranking several projects that need different amounts of upfront capital.
- Can I paste a list of cash flows instead of typing each one?
- Yes. Copy a column of numbers from a spreadsheet, one value per line, and paste into any cash flow field. The values fill that row and the ones after it, adding new rows automatically if needed.
- Are the figures I enter kept private?
- Yes. The whole calculation runs in your browser. The investment amount, the discount rate, and every cash flow you enter are never uploaded, stored, or logged.
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