Investing & Returns

Net Present Value Calculator

Discount a sequence of annual net cash flows and subtract an initial investment made today.

Your numbers

Sample inputs are illustrative. Changing currency changes labels only.

Your result

Preparing the sample calculation…

Shared links include your entered amounts. Saved scenarios stay in this tab only.

How to use this calculator

  1. Enter initial outlay at time zero, effective annual discount rate (%), annual net cash flows, comma-separated.
  2. Choose a display currency, then select Calculate. Results also update after a brief pause while you edit.
  3. Read the result with the assumptions below. Export details or save a second scenario to compare your choices.

Formula and method

NPV = −initial outlay + Σ(CF_t / (1 + r)^t), with t starting at 1 for the first year-end cash flow.

Assumptions and limitations

Cash flows are equally spaced at year-end. Enter net receipts as positive and net costs as negative. Up to 100 annual cash flows are supported. This is not XNPV for irregular dates.

Worked example

An initial outlay of 1,000 and two year-end receipts of 600 discounted at 10% gives NPV of approximately 41.32.

What the result means

Positive NPV means modeled discounted receipts exceed the starting outlay at your chosen rate. Results depend heavily on cash-flow and rate assumptions.

Common questions

Is the first flow today?

No. The separate initial outlay is today; the first listed cash flow is one year later.

Can cash flows be negative?

Yes. Use a minus sign for a net annual cash outflow.

Methodology and transparency

Calculation specification reviewed on 2026-10-14. Mathematical implementation is tested against independent reference fixtures. This does not imply review by a licensed financial professional. Read the testing and precision policy.

Background reference: openstax.org — financial method. FinanceMath implements its own calculator.