Net Present Value Calculator
The Net Present Value (NPV) calculator helps determine the profitability of an investment or project by considering the time value of money. It converts all future cash flows to their present value and compares them with the initial investment.
When to use NPV:
- Evaluating investment opportunities
- Comparing multiple projects
- Capital budgeting decisions
- Project feasibility analysis
Discount Rate
Cash Flow Input Mode
Choose between fixed periodic cash flows or custom cash flows for each period
For fixed cash flows:
- Enter the initial investment as a positive number
- Enter the periodic cash inflow amount
- Specify the number of periods
For custom cash flows:
- Enter negative values for outflows (investments)
- Enter positive values for inflows (returns)
- Period 0 typically represents the initial investment