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NPV Calculator

Discount a stream of future cash flows back to today's value — enter your rate and cash flows, get net present value.

Cash flows by year

Year 1
Year 2
Year 3

Net present value

-$5.26

Negative NPV — the project destroys value at this discount rate.

Present value of cash flows$994.74
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What is net present value?

NPV discounts a stream of future cash flows back to today at a chosen rate, then subtracts the initial investment. A positive NPV means the project earns more than your discount rate; a negative NPV means it earns less.

Choosing a discount rate

Use your cost of capital — the return available on a comparable-risk alternative. Higher rates penalize distant cash flows more, which is why long-dated projects are so sensitive to the rate you pick.

NPV vs. IRR

NPV gives you a dollar value at a fixed rate; IRR gives you the rate at which NPV is zero. They usually agree, but NPV is the more reliable decision rule when comparing projects of different sizes.

Frequently asked questions

What is net present value?
NPV is the sum of all future cash flows discounted back to today at a chosen rate, minus the initial outlay. A positive NPV means the project creates value at that discount rate; a negative NPV means it destroys it.
What discount rate should I use?
Use your cost of capital — the return you could earn on a comparable-risk alternative. Companies often use their WACC (weighted average cost of capital). Higher rates penalize distant cash flows more heavily.
Is this NPV calculator free?
Yes — enter unlimited cash-flow periods, no login, nothing leaves your browser.