NPV Calculator
Discount future cash flows to today and subtract your initial investment to see if a project adds value.
NPV Calculator
Future Cash Flows
PV of Future Cash Flows
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Initial Investment
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Profitability Index
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Undiscounted Total
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Net Present Value (NPV)
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Present value vs. investment
Discounted Cash Flows
| Period | Time discounted (t) | Cash flow (₹) | Discount factor | Present value (₹) | Cumulative NPV (₹) |
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Assumptions & method
- Formula: NPV = −Initial investment + Σ cashflowₖ ÷ (1 + r)^tₖ, where r is the discount rate per period.
- End-of-period timing: tₖ = k, so the first future cash flow is discounted by one full period.
- Beginning-of-period timing: tₖ = k − 1, so the first future cash flow is received at time 0 and is not discounted.
- The initial investment is a single outflow at time 0, entered as a positive number. Later negative cash flows are treated as extra outlays.
- The discount rate is per period and constant. Use an annual rate when each period is a year.
- Taxes, inflation and financing costs are not modelled. A different discount rate can change the conclusion.
Results are estimates based on the figures you enter. They are not guarantees and not financial advice.
What is net present value (NPV)?
A rupee received in future is worth less than a rupee today because today's money can earn a return in the meantime. NPV puts every cash flow on the same footing by discounting it to time 0 at the rate you choose, then subtracting what you pay up front. The cumulative column in the table shows when the discounted flows first cover the investment, which is a discounted payback view. The timing option matters most for streams like rent or lease payments received at the start of each period. NPV answers "how much value does this add at my required return?", which is why it is the standard test for project and investment decisions.