Know instantly if your investment creates or destroys value
Calculator Inputs
Typically your WACC or required rate of return. E.g. 10 = 10% per period.
Period 0 is usually the initial investment (enter as a negative number). Subsequent periods are cash inflows (positive) or outflows (negative).
Results
Project creates value (NPV > 0)
At this discount rate the investment returns more than it costs.
Cumulative NPV by Period
Period-by-Period Breakdown
Detailed discount factor, present value, and cumulative NPV for each period.
How NPV Works
Net Present Value (NPV) converts every future cash flow into today's dollars using the formula: NPV = Σ CFₜ / (1 + r)ᵗ where r is the discount rate and t is the period number. Period 0 is typically the initial investment (negative). A positive NPV means the project earns more than the required return; a negative NPV means it earns less.
Disclaimer: This tool provides estimates for educational purposes. Real investment decisions should account for taxes, inflation, risk adjustments, and qualitative factors. Consult a qualified financial advisor before making capital allocation decisions.
The NPV calculator computes the net present value of any investment by discounting future cash flows back to today's dollars. Enter your discount rate — typically your WACC or required rate of return — and a series of cash flows starting with the initial investment. Get NPV, IRR, payback period, and profitability index in seconds to make data-driven capital budgeting decisions.
Any NPV above zero is considered acceptable — it means the investment earns more than your required rate of return and creates value. The higher the positive NPV, the more value the project adds. A negative NPV means the project returns less than the discount rate and should generally be rejected.
For corporate projects, use your Weighted Average Cost of Capital (WACC), which blends the cost of debt and equity. For personal investments, use your opportunity cost — the return you could earn on an alternative investment of similar risk. A common starting point is 8–12% for moderate-risk projects.
NPV tells you the dollar value added by a project at a specific discount rate. IRR is the discount rate that makes the NPV exactly zero. If the IRR exceeds your required rate of return, the project is worthwhile. NPV is generally preferred for decision-making because it accounts for the scale of investment.
IRR requires at least one sign change in the cash flows — typically a negative initial investment followed by positive inflows. If all your cash flows are the same sign, or if the cash flow pattern has multiple sign reversals creating multiple IRRs, the calculator will display N/A. In these cases, rely on NPV for your decision.