Net Present Value
Enter the initial investment, discount rate, and annual cash flows.
Net present value
$0
PI: 0.00 · Decision: —
NPV
$0
Profitability index
0.00
Total cash flows
$0
Payback period
0 yrs
Discounted payback
0 yrs
Decision
—
Worked example
With the default inputs shown below, this calculator returns the following results:
| Input | Value |
|---|---|
| Initial investment ($) | $100,000 |
| Discount rate (%) | 10% |
| Year 1 cash flow ($) | $30,000 |
| Year 2 cash flow ($) | $35,000 |
| Year 3 cash flow ($) | $40,000 |
| Year 4 cash flow ($) | $45,000 |
| Year 5 cash flow ($) | $50,000 |
| Result | Value |
|---|---|
| Net present value | $48,033 |
| NPV | $48,033 |
| Profitability index | 1.48 |
| Total cash flows | $200,000 |
| Payback period | 2.9 yrs |
| Discounted payback | 3.4 yrs |
Values shown are produced by this page in your browser; change any input to update them.
How to use the Net Present Value
- Initial investment ($) — default $100,000
- Discount rate (%) — default 10%
- Year 1 cash flow ($) — default $30,000
- Year 2 cash flow ($) — default $35,000
- Year 3 cash flow ($) — default $40,000
- Year 4 cash flow ($) — default $45,000
- Year 5 cash flow ($) — default $50,000
- Press Calculate to update the results instantly.