Formula and method
NPV = Σ Cₜ/(1 + r)^t, with the first entered flow at t = 0 and the rate matching one flow period.
Worked example
An initial −10,000 followed by three annual 4,000 receipts has NPV about −52.59 at a 10% annual discount rate.
Net Present Value Calculator
Discount equally spaced cash flows to time zero and inspect the present value of every inflow and outflow.
Printed from Calxy · https://www.calxy.net/financial/net-present-value-calculator
Net present value-52.5920 currency units
Time zero first, followed by equally spaced flows. Use negatives for outflows.
%
-99.999 – 100000
Net present value
-52.5920 currency units
- Undiscounted net flow2,000.0000 currency units
| Period | Cash flow | Present value |
|---|---|---|
| 0 | -10000 | -10000.00 |
| 1 | 4000 | 3636.36 |
| 2 | 4000 | 3305.79 |
| 3 | 4000 | 3005.26 |
Equally spaced end-of-period flows after time zero. It does not handle irregular dates, inflation separately or uncertain cash flows.
How this was calculated
NPV = Σ Cₜ/(1 + r)^t, starting with t = 0.
Use a discount rate whose period matches the spacing of the cash flows.
References
- Net Present Value Method — OpenStax
Frequently asked questions
Should I enter an annual rate for monthly flows?
Use a monthly discount rate for monthly flows. An effective annual rate converts to a monthly rate using (1 + annual rate)^(1/12) − 1.
Last updated . Results are estimates for informational purposes only.