Net present value (NPV) calculator
Calculate NPV — the total present value of future cash flows minus the initial investment. Positive NPV = profitable project.
Discount rate (%)
Cash flows (comma-separated, first is initial investment as negative)
NPV formula
NPV = Σ CFₜ / (1+r)ᵗ for t = 0, 1, 2, ...
CF₀ is typically the initial investment (negative). Each future cash flow is discounted back to present value.
Decision rule
NPV > 0: Accept the project — it adds value. NPV < 0: Reject — it destroys value. NPV = 0: Breakeven.
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