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Free Online NPV Calculator

Enter what you invest upfront, the cash you expect each year, and your discount rate. You get net present value (NPV)—whether the project creates value at the return you require.

NPV compares the present value of future cash inflows to what you invest today at your discount rate.

Try an example
10000
10
3
3000

How to read NPV

Net present value is the sum of each future cash flow discounted to today, minus your initial investment. Positive NPV means the project earns more than your hurdle rate; negative NPV means it falls short.

Pick a discount rate that reflects your cost of capital or required return (often 8–12% for business projects, higher for riskier ventures).

NPV is in dollars, not a percentage. Pair it with IRR when you want a rate-of-return summary for comparing projects.

How to use this calculator

  1. Enter your total upfront investment.
  2. Choose fixed yearly inflows or enter a different amount for each year.
  3. Set your discount rate (required return as a percentage).
  4. Click Calculate NPV and review the result and optional breakdown.
  5. Try a higher discount rate to see how stricter assumptions change the decision.

Worked examples

Sample numbers you can try in the calculator above. Your lender's quote may differ slightly.

  • Profitable 3-year project

    Present value of inflows exceeds the initial cost at a 10% hurdle rate.

    $10,000 invested · $3k, $4k, $5k in years 1–3 · 10% discount

    NPV: NPV about +$617

  • Equal annual rents

    Shows when purchase price or rent assumptions do not clear the hurdle.

    $200,000 invested · $25,000/yr for 5 years · 8% discount

    NPV: NPV often negative at 8%

  • Growing business cash flows

    Variable inflows fit expansion projects where returns ramp up over time.

    $50,000 · rising yearly inflows · 12% discount

    NPV: Check sign of NPV in the tool

  • Equipment with cost savings

    Treat annual savings as positive cash flows against the equipment price.

    $75,000 · $30,000 savings × 3 years · 15% discount

    NPV: Compare NPV to zero before buying

Frequently asked questions about the nPV Calculator

  • What is NPV?

    Net present value is discounted future cash inflows minus the initial investment. Positive NPV means value creation at your discount rate.

  • What discount rate should I use?

    Use your cost of capital, hurdle rate, or required return. A higher rate is a stricter test.

  • NPV vs IRR?

    NPV shows dollar value added; IRR is the break-even return rate. Use both for major decisions.

  • Can NPV be zero?

    Yes. At the IRR, NPV equals zero—the project exactly meets that return threshold.