Net Present Value (NPV) Calculator

If you’re planning a project, analyzing an investment, or just trying to make smarter financial decisions, the Net Present Value (NPV) calculator can be a powerful tool.

In this post we provide an easy to use calculator along with instructions on how to use it and interpret the results. The tool also plots the results for visualization.

💰 NPV Calculator with Chart





⚙️ Example: How to Use It

Imagine this situation:

  • You invest $1,000 now
  • You expect to receive $300 in Year 1, $400 in Year 2, and $500 in Year 3
  • You use a discount rate of 10%

In the calculator, you enter:

  • C0 = 1000
  • r = 10
  • C1 = 300, C2 = 400, C3 = 500

Using the formula (which is used in the calculator)

NPV = (300 / 1.1^1) + (400 / 1.1^2) + (500 / 1.1^3) - 1000
NPV ≈ 272.73 + 330.58 + 375.66 - 1000
NPV ≈ –$21

So the investment gives you a negative NPV — it’s not profitable.

What Is Net Present Value (NPV)?

Net Present Value helps you figure out how much future cash flows are worth in today’s money.

It answers the question:

"If I invest now, and get money back over time, how much is that actually worth today?"

Because of inflation and opportunity cost, money in the future is worth less than money now. NPV takes that into account.

  • If NPV is positive → the investment is likely profitable
  • If NPV is negative → it may not be worth it
  • If NPV is zero → you’ll just break even

🧮 The NPV Formula

Here’s the standard Net Present Value formula:

NPV = (C1 / (1 + r)^1) + (C2 / (1 + r)^2) + ... + (Cn / (1 + r)^n) - C0

Where:

  • C0 = Initial investment (a negative number, money going out)
  • C1 to Cn = Cash flows in years 1 through n
  • r = Discount rate (as a decimal)
  • n = Total number of periods (usually years)

Don’t worry about solving this by hand — that’s what the calculator on this page is for!

🧑‍💻 What Does an NPV Calculator Do?

An NPV calculator lets you:

  • Enter your initial investment
  • Add expected cash flows for each year
  • Choose a discount rate (e.g. 10% = 0.10)

It then automatically calculates the net present value, so you can decide if a project or investment is worth it.

✅ Why Use an NPV Calculator?

  • It saves time
  • It avoids math errors
  • It lets you experiment with different cash flows and discount rates
  • It’s useful for personal finance, business, real estate, and investing

You’ll quickly see if an opportunity is worth your money.