NPV

Net Present Value Calculator

Whether an investment beats your required return: its cash flows discounted to today, less what it costs.

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Result…

$
% / yr

Your required return or cost of capital.

One per year, separated by commas or new lines; negative for a cost.

 

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How it's calculated

NPV = −C₀ + Σ CFₜ ÷ (1 + r)^t
IRR: the r where NPV = 0

A positive NPV means the project returns more than your discount rate after paying back what it cost; negative means less. The IRR is the discount rate at which the NPV is exactly zero. NPV depends heavily on the rate and on how reliable the cash-flow estimates are.

Your numbers, step by step

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