Money & shopping
Net present value calculator
Discount a series of end-of-period cash flows and subtract the initial cost.
A clear answer. Here’s how.
NPV = −initial outlay + sum(cash flow at period t / (1 + periodic discount rate)^t). The first listed flow occurs at the end of period 1. Use equal time periods, one currency and a matching rate. Up to 1,200 flows; no forecast or discount rate is chosen for you.
See a worked example
Worked example
A fixed demonstration, separate from the values you enter above.
- Initial outlay at period zero
- 10000
- Discount rate per cash-flow period (%)
- 5
- End-of-period net cash flows
3000 4000 5000
Example result
| Period | Cash flow | Discounted value |
|---|---|---|
| 1 | 3,000 | 2,857.14285714 |
| 2 | 4,000 | 3,628.11791383 |
| 3 | 5,000 | 4,319.18799266 |
Initial outlay: 10,000.00. Cash flows start at the end of period 1.