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NPV Calculator

Analyze investment profitability with Net Present Value

Investment Parameters
₹
0 10M
%
Cash Flow Input Mode
₹
%
Cash flows will grow by this rate each year
Quick Analysis
NPV Analysis Result
Net Present Value (NPV) Good Investment

₹13,723.60

Investment adds value to your wealth
Total Cash Inflows: ₹150,000
Present Value of Inflows: ₹113,724
Profitability Index (PI): 1.14
ROI (Simple): 50.0%
NPV: ₹13,724
Investment Insight

Since NPV is positive, this investment creates value and is financially attractive.

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NPV Decision Rule
  • NPV > 0: Accept project
  • NPV < 0: Reject project
  • NPV = 0: Indifferent

About NPV Calculator

Time Value of Money

Calculates present value of future cash flows considering that money today is worth more than the same amount in the future.

Investment Comparison

Compare different investment opportunities on the same scale to make informed decisions.

NPV Formula

NPV compares the present value of money today to the present value of money in the future, taking inflation and returns into account.

NPV = -C₀ + Σ [ CFₜ / (1+r)ᵗ ]
Where: C₀ = Initial Investment, CFₜ = Cash Flow at time t, r = Discount Rate

FAQs

What is a good NPV?
A positive NPV indicates the investment will generate more value than the cost. The higher the NPV, the more attractive the investment.
How to choose discount rate?
Use your required rate of return, cost of capital, or the return rate from alternative investments with similar risk.
NPV vs IRR?
NPV gives the absolute value created, while IRR gives the percentage return. NPV is generally preferred for mutually exclusive projects.

Net Present Value (NPV) Calculator – Complete Guide

The NPV Calculator helps investors, business owners, and financial planners evaluate whether an investment will generate profit over time. By discounting future cash flows to their present value, NPV shows the true worth of a project today.

Why Use an NPV Calculator?

How Net Present Value Works

Net Present Value calculates the difference between the present value of cash inflows and the initial investment. A positive NPV means the project is expected to earn more than the required rate of return.

NPV Formula:
NPV = − Initial Investment + Σ (Cash Flow ÷ (1 + r)ⁿ)

NPV Decision Rule

Who Should Use This Tool?

This NPV calculator is ideal for:

This calculator is provided for educational and planning purposes only and does not constitute financial advice.