NPV Calculator
Calculate Net Present Value for capital budgeting and investment decisions.
Investment
₹
Upfront cost of the investment (year 0).
%
Required rate of return or WACC.
Cash Flows
Year 1
₹
Year 2
₹
Year 3
₹
Year 4
₹
Year 5
₹
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✓ Invest
Net Present Value
₹0
0.0% return on investment
0.00
Profitability Index
N/A
Payback Period
Present Value Breakdown
| Year | Cash Flow | PV Factor | Present Value |
|---|---|---|---|
| 0 | -₹1,00,000 | 1.000 | -₹1,00,000 |
| 1 | ₹30,000 | 0.9091 | ₹0 |
| 2 | ₹35,000 | 0.8264 | ₹0 |
| 3 | ₹40,000 | 0.7513 | ₹0 |
| 4 | ₹45,000 | 0.6830 | ₹0 |
| 5 | ₹50,000 | 0.6209 | ₹0 |
| NPV | ₹0 | ||
Documentation
How It Works
NPV discounts all future cash flows to their present value using a discount rate, then subtracts the initial investment. A positive NPV means the project creates value.
The Profitability Index (PI) measures value per dollar invested. A PI > 1.0 indicates a worthwhile investment.
Formula
Frequently Asked Questions