Net Present Value (NPV) Calculator

Calculate the Net Present Value of future cash flows to evaluate investment opportunities and project profitability.

NPV Calculator
Calculate Net Present Value and investment analysis metrics

Understanding NPV

NPV Formula:

NPV = ∑(CF_t / (1 + r)^t) - Initial Investment

Where CF_t is cash flow at time t, r is discount rate

Interpretation:

  • • NPV > 0: Investment is profitable
  • • NPV = 0: Investment breaks even
  • • NPV < 0: Investment loses money

Key Factors:

  • • Discount rate (cost of capital)
  • • Cash flow timing
  • • Initial investment amount
  • • Project duration

Applications:

  • • Capital budgeting
  • • Investment analysis
  • • Project evaluation
  • • Financial planning