The NPV calculator, net present value, discounts each cash flow back to today and adds them up. With 10000 up front, 8%, and inflows of 3000, 3500, 4000, and 4500, NPV is about 2261.43. You can add a second rate, a terminal value, and a table of discounted years.
NPV = sum of CF_t ÷ (1+r)^t. The 10000 at 8% example is about 2261. The rate that drives NPV to 0 is on IRR.
Initial investment / cost (enter as positive), Annual discount rate A (%), Annual discount rate B (%) and Terminal / salvage value. The result shows up here.
NPV, net present value, is the sum of cash flows pulled back to today: each year t is divided by (1+r)^t. You type the initial investment as positive and the model places it in year 0 as an outflow. Rate A is the headline discount rate. A positive NPV at 8% means the series creates value above that hurdle. PI, discounted inflows divided by the value of outflows, usually sits above 1 together with a positive NPV.
First card: 10000, 8%, four inflows 3000, 3500, 4000, 4500. NPV about 2261.43, undiscounted sum 5000, PI above 1. Second: 50000, 10%, five times 12000 and a 5000 terminal value. NPV about −1405.95. Third: 20000, 12%, and 5000 / 5000 / 5000 / 2000 yield about −6719.81.
Type Initial investment as a positive number and Annual discount rate A (%). Add year rows with the button. Rate B, terminal value, and the table sit behind toggles. Click Calculate and read NPV at A first. A single future amount with no series is simpler on the PV page.
IRR on the same first series is about 17.09%. CAGR and rate of return do not read yearly flows. FV goes from today forward, without discounting a series.
The result does not know risk or a changing rate. 2261 at 8% is not an investment decision, only the sum of discounted entries. Terminal value joins the last year before discounting, not as a separate magic bonus.
Type 10000, 8, and four years 3000, 3500, 4000, 4500. Check about 2261. Then raise the rate to 12% from the third example to see the minus.
NPV = sum of CF_t ÷ (1+r)^t. With 10000 up front, 8%, and 3000, 3500, 4000, 4500, NPV is about 2261.43.
NPV ≈ 2,261.43
Undiscounted sum ≈ 5,000.00
PI > 1
Positive NPV at 8% - the project creates value above the alternative return; PI above 1 confirms that in another framing.
NPV ≈ −1,405.95
Undiscounted sum ≈ 15,000.00
Terminal value lifts the last year, but at a 10% discount the project still comes out negative.
NPV ≈ −6,719.81
Undiscounted sum ≈ −3,000.00
A higher rate pulls later inflows down hard - hence a clearly negative NPV.
NPV @ 8% ≈ 2,261.43
NPV @ 12% ≈ 1,175.70
Δ (B − A) ≈ −1,085.73
The same project at a higher cost of capital shows a much lower NPV - that is why comparing A and B helps.
NPV does not speak to risk or rate volatility - with the same cash flows, a different discount rate can flip the sign.
About 2261.43. Undiscounted sum 5000. PI is above 1.
NPV about −1405.95. The terminal lifts the last year, but 10% still pulls the project below zero.
NPV about −6719.81. A higher rate cuts later inflows hard.
NPV is money at a chosen rate. IRR is the rate that drives that NPV to zero. The same first series has IRR about 17.09%.
PV prices one future amount or a level annuity. NPV reads uneven years and a year-0 outlay.
Profitability index: discounted inflows ÷ |discounted outflows|. Above 1 usually pairs with a positive NPV on a cost-then-inflows shape.
Yes. The PV column at A should sum to headline NPV, about 2261.43 in the first example.
Comparison only. The headline NPV always uses rate A; B is a second scenario.
No. Risk and changing rates are not in the sum. 8% is the number you typed.
The label asks for a cost. The model applies the minus in year 0.
NPV sums discounted cash flows. You type the rate yourself.
Page updated in 2026.
