NPV Calculator | Net Present Value Calculator

Q: How do you calculate net present value?

Use the formula NPV = -C0 + Σ(Ci / (1 + r)^i) . You discount each future cash flow by the required return r and subtract the initial investment C0 .

Q: What is the profitability index?

The profitability index is PI = Σ(Ci / (1 + r)^i) / C0 . A PI above 1 usually means the project creates value, while a PI below 1 suggests it destroys value.

Q: How do you calculate NPV in Excel?

In Excel, you can use =NPV(rate, value1, value2, ...) for future cash flows and then add the initial investment separately. A common structure is =NPV(r, C1:Cn) - C0 if C0 is the initial outflow at period 0 .

NPV Calculator: calculate net present value from discounted cash flows and an investment amount.

Use this NPV calculator to evaluate an investment from a series of uneven cash flows. It discounts each future cash inflow and outflow back to today, which makes net present value one of the core tools in capital budgeting, discounted cash flow (DCF) analysis, and investment appraisal. In addition to NPV, this calculator also shows the profitability index (PI), ROI, discounted ROI, and both regular and discounted payback period.

The discount rate represents the required return for the project. The calculator supports annual, semi-annual, quarterly, and monthly cash flows, so you can model projects with different cash flow frequencies without changing tools. If the NPV is positive, the project is expected to create value above the required return. If the NPV is negative, the investment does not meet the target return under the current assumptions.

Example: if an investment costs 10,000 today and generates 2,200, 2,400, 2,600, 2,800, 3,000, and 3,200 in later periods at a discount rate of 10%, the calculator discounts each cash flow and sums the results to estimate project value. This makes the tool useful for comparing projects, testing assumptions, deciding whether future cash inflows justify the initial outlay, and exporting the full analysis to CSV for review or reporting.

Net present value formula

\begin{align} NPV &=-C_{0}+\sum_{i=1}^{t}\frac {C_{i}}{(1+r)^{i}}\\ \end{align}

Profitability index formula

\begin{align} PI &=\frac{\sum_{i=1}^{t}\frac {C_{i}}{(1+r)^{i}}}{C_{0}}\\ \end{align}

Initial Data

Discount Rate		% Estimate discount rate with WACC
Discount rate mode		Single discount rate Different discount rate for each period
Cash flow frequency		Annually Semi-annually Quarterly Monthly

Year	Cash-In	Initial investment/Cash-Out	Net Cash Flow	Discount Rate	Discounted Cash Flow
0
Total

Result

Net Present Value (NPV)

0.00

Profitability Index (PI)

0.0000

Payback period	-
Discounted payback period	-
Cumulative cash flow	0.00
Cumulative discounted cash flow	0.00
ROI	0.00%
Discounted ROI	0.00%

NPV Calculator FAQ

How do you calculate net present value?
Use the formula NPV = -C0 + Σ(Ci / (1 + r)^i). You discount each future cash flow by the required return r and subtract the initial investment C0.

What does a positive NPV mean?
A positive NPV means the investment is expected to create value above the chosen discount rate. In other words, the discounted cash inflows exceed the initial outflow.

What discount rate should I use for NPV?
Use a discount rate that reflects the project’s required return and risk. In many business valuation and capital budgeting cases, analysts use WACC as the starting point for the discount rate.

What is the profitability index?
The profitability index is PI = Σ(Ci / (1 + r)^i) / C0. A PI above 1 usually means the project creates value, while a PI below 1 suggests it destroys value.

Can I use monthly or quarterly cash flows in this NPV calculator?
Yes. You can switch the cash flow frequency between annual, semi-annual, quarterly, and monthly periods. The calculator then applies the discount rate on a matching per-period basis.

What is the difference between NPV and discounted payback period?
NPV measures the total value created after discounting all cash flows, while discounted payback period measures how long it takes to recover the initial investment using discounted cash flows. NPV focuses on value creation; discounted payback focuses on recovery time.

How do you calculate NPV in Excel?
In Excel, you can use =NPV(rate, value1, value2, ...) for future cash flows and then add the initial investment separately. A common structure is =NPV(r, C1:Cn) - C0 if C0 is the initial outflow at period 0.

What is the difference between NPV and IRR?
NPV measures value in currency terms, while IRR measures the implied rate of return. NPV tells you how much value a project adds at a chosen discount rate, whereas IRR tells you the discount rate that makes NPV equal to 0.

Can I export the NPV calculation to CSV?
Yes. The calculator can export the full setup and result to CSV, including the discount rate mode, cash flow frequency, cash flow table, totals, NPV, PI, ROI, and payback metrics.