NPV Calculator: Net Present Value of a Project

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Editorial verification: Examples on this page are checked against FutureCalc core formulas before publish. Source: cross-checked with OpenStax TVM basics and Investor.gov investing basics.

Net Present Value Calculator

What is NPV?

Net present value (NPV) discounts every future cash flow to today and subtracts the initial investment. A positive NPV means the project earns more than the discount rate on a present-value basis. Pair this tool with the IRR calculator and the NPV vs IRR guide when ranking projects.

For uneven series without a separate outlay field, the cash flow calculator remains useful; for a single future amount, use the present value calculator.

NPV formula

NPV = CF0 + Σ CFt / (1 + r)t

Choose r carefully — see how to choose a discount rate.

Example

Outlay −$100,000; five end-of-year inflows $30k–$50k; r = 10%. If NPV is positive, the project clears a 10% hurdle rate in present-value terms.

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