NPV Calculator
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Cash Flows by Year
Net Present Value
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Enter Year 0 as a negative number (the initial outlay). All later years should be the net cash flow for that year.
Net Present Value (NPV) tells you what a series of future cash flows is worth in today's rupees, after discounting for the fact that money in the future is worth less than money in hand today.
It's the standard method for deciding whether a project, business investment, or purchase is worth its upfront cost — a positive NPV means the future returns outweigh what you put in, once the time value of money is factored in.
How This Calculator Works
NPV = Σ [CFt / (1+r)t] summed across every year, where CFt is the cash flow in year t and r is your chosen discount rate.
Frequently Asked Questions
What discount rate should I use?
This is usually your cost of capital, your required rate of return, or a benchmark like your alternative investment return. There's no single correct rate — it reflects what you'd otherwise do with the money.
What does a negative NPV mean?
It means that, at your chosen discount rate, the future cash flows aren't worth as much as your initial investment — the project or purchase is expected to destroy value rather than create it.
How is NPV different from IRR?
NPV gives you a rupee amount at a rate you choose. IRR instead solves for the rate at which NPV would be exactly zero. Use our IRR Calculator if you want that rate directly.