advanced Calculator
NPV Calculator
Calculate Net Present Value of future cash flows. NPV helps evaluate the profitability of an investment.
₹10,00,000
₹
₹1,000₹1,00,00,00,000
₹3,00,000
₹
₹0₹1,00,00,00,000
%
150
years
130
Results
Net Present Value
₹0
PV of Cash Flows
₹0
Profitability Index
0
How to Use NPV Calculator
- 1
Enter initial investment
- 2
Input expected annual cash flows
- 3
Specify discount rate
- 4
Enter investment period
NPV Calculator Formula
NPV = Σ(Cash Flow / (1 + r)^t) - Initial InvestmentExample Calculation
Input Values
Initial Investment
₹10,00,000
Annual Cash Flow
₹3,00,000
Discount Rate
12 %
Investment Period
5 years
Results
Net Present Value
₹81,424
PV of Cash Flows
₹10,81,424
Profitability Index
1.08
Frequently Asked Questions
What is NPV?
Net Present Value is the difference between present value of cash inflows and outflows over time.
What does positive NPV mean?
Positive NPV means the investment returns more than the discount rate and is worth pursuing.
How to choose discount rate?
Use cost of capital, required return rate, or opportunity cost of the next best alternative.