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!
About
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.