How to use the NPV calculator
- Same cash flow list as IRR—period 0 usually upfront investment (negative).
- Enter discount rate; use quick rate chips then fine-tune.
- Read NPV, verdict vs rate, period count; discounted table on the right.
- Copy link; open IRR with the same flows from results.
Reading NPV
Sum of flows discounted to today. Positive beats your rate in this model; negative falls short—strategy and risk sit outside the math.
Discount rate
Cost of capital, hurdle, or opportunity cost. Match nominal/real flows with the same kind of rate.
NPV and IRR
IRR is where NPV equals zero. Compare projects at one discount rate using NPV; use both tools together.
Frequently asked questions
What is NPV?
Net present value sums discounted cash flows to today. Positive NPV means the project beats your discount rate in this model.
What discount rate should I use?
Use cost of capital, hurdle rate, or opportunity cost. A higher rate discounts future flows more aggressively.
Same cash flow format as IRR?
Yes—period 0 is usually upfront investment (negative), then operating flows. Same format as the IRR calculator; jump between pages with your flows; the results table shows discounted present values.
Must I reject negative NPV projects?
Not always—strategy and risk sit outside the model. Negative NPV means the numbers fall short at your stated rate.
Relationship to IRR?
IRR is the rate where NPV equals zero. If IRR exceeds your hurdle, NPV is typically positive for the same flows.
Uneven timing between flows?
Each line is one equal-length period (e.g., annual). Irregular dates need other tools or manual adjustment.
Do I add inflation separately?
Match nominal flows with nominal discount rates, or real with real—do not mix.
Can I share this scenario with someone?
Yes. Copy link below the form keeps your current inputs so you can share the scenario or save it for later.