Financial Tool
Net Present Value (NPV) Calculator
Calculate the profitability of an investment by comparing present value of cash inflows to initial cost.
Net Present Value (NPV)
$2,194.71
PV of Inflows: $12,194.71
Year
Cash Flow
Present Value
1
$2,000.00
$1,904.76
2
$3,000.00
$2,721.09
3
$4,000.00
$3,455.35
4
$5,000.00
$4,113.51
Σ The Formula
NPV = Σ [Cn / (1+r)^n] - Initial Investment
Real World Examples
Investment Decision
If NPV > 0, the investment is theoretically profitable.
Example
Invest $10k. Returns $2k, $3k, $4k, $5k over 4 years @ 5% discount.
# About This Calculator
Net Present Value (NPV) is the difference between the present value of cash inflows and the present value of cash outflows over a period of time.
It is one of the most reliable tools used in capital budgeting and investment planning. A positive NPV suggests the project earnings exceed the anticipated costs.
Frequently Asked Questions
Is Net Present Value (NPV) Calculator free to use?+
Yes, Net Present Value (NPV) Calculator on Matheric is completely free to use. We believe in accessible education and utility for everyone.
How accurate is Net Present Value (NPV) Calculator?+
We use standard mathematical formulas and high-precision computing algorithms to ensure results for Net Present Value (NPV) Calculator are accurate for academic and professional use.
Can I use Net Present Value (NPV) Calculator on my phone?+
Yes! Net Present Value (NPV) Calculator is fully responsive and optimized for all devices, including smartphones, tablets, and desktops.
Do you save my data?+
No. We prioritize your privacy. All calculations are performed in your browser or temporarily processed, and we do not store your personal input data.
How do I report a bug?+
If you notice any issues with Net Present Value (NPV) Calculator or have suggestions for improvement, please contact us via the link in the footer. We value your feedback!
Can I request a new feature?+
Absolutely. We are constantly expanding our toolset. Feel free to reach out with your requests, and we might build it next!