// NPV CALCULATOR

NPV Calculator

Find the net present value of a cash flow series at a chosen discount rate.

// INPUTS

DISCOUNT RATE (% / period)

CASH FLOWS (PERIOD 0, 1, 2, …)

One per line. Negatives are outflows.

// OUTPUT

NET PRESENT VALUE

₹29,078.68

PERIODS6

NOMINAL SUM OF FLOWS₹75,000

DECISIONPOSITIVE — value-additive

// FORMULA

NPV = Σ CFₜ / (1 + r)ᵗ

t starts at 0. Cash flow at t = 0 is added at face value.

// EXAMPLE

// WORKED OUT

Discount rate 10%, flows: -100000, 25000, 30000, 35000, 40000, 45000
  NPV ≈ ₹29,078.68 — value-additive at this discount rate

// WHAT THIS MEANS

NPV is the cleanest single answer to 'is this worth doing?' A positive NPV means the project earns more than the discount rate; a negative NPV means it earns less. Two projects can be compared directly by NPV at the same discount rate.

// FAQ

How do I pick the discount rate?+

Use your opportunity cost — the return you could earn on a comparable-risk alternative. For corporate projects, the weighted average cost of capital is the standard choice.

Why does the calculator say 'value-additive'?+

Because a positive NPV means the project beats the discount rate. The total it adds, in today's terms, is the NPV number itself.