advanced Calculator

NPV Calculator

Calculate Net Present Value of future cash flows. NPV helps evaluate the profitability of an investment.

₹10,00,000
₹1,000₹1,00,00,00,000
₹3,00,000
₹0₹1,00,00,00,000
%
150
years
130

Results

Net Present Value

₹0

PV of Cash Flows

₹0

Profitability Index

0

How to Use NPV Calculator

  1. 1

    Enter initial investment

  2. 2

    Input expected annual cash flows

  3. 3

    Specify discount rate

  4. 4

    Enter investment period

NPV Calculator Formula

NPV = Σ(Cash Flow / (1 + r)^t) - Initial Investment

Example Calculation

Input Values

Initial Investment

₹10,00,000

Annual Cash Flow

₹3,00,000

Discount Rate

12 %

Investment Period

5 years

Results

Net Present Value

₹81,424

PV of Cash Flows

₹10,81,424

Profitability Index

1.08

Frequently Asked Questions

What is NPV?

Net Present Value is the difference between present value of cash inflows and outflows over time.

What does positive NPV mean?

Positive NPV means the investment returns more than the discount rate and is worth pursuing.

How to choose discount rate?

Use cost of capital, required return rate, or opportunity cost of the next best alternative.