NPV Calculator - Net Present Value

Your details

The upfront cost or outlay at time zero (enter as a positive number; the calculator treats it as a cash outflow).
The required rate of return, also called the hurdle rate. Use your WACC or the expected opportunity cost of capital.
%
Net cash inflow (or outflow if negative) expected at the end of Year 1.
Net cash inflow (or outflow if negative) expected at the end of Year 2.
Net cash inflow (or outflow if negative) expected at the end of Year 3.
Net cash inflow (or outflow if negative) expected at the end of Year 4.
Net cash inflow (or outflow if negative) expected at the end of Year 5.
Leave at 0 if the project does not extend to Year 6.
Leave at 0 if the project does not extend to Year 7.
Leave at 0 if the project does not extend to Year 8.
Leave at 0 if the project does not extend to Year 9.
Leave at 0 if the project does not extend to Year 10.
Currency
Net Present Value (NPV)Positive NPV - project creates value
$24,088.02

Sum of discounted future cash flows minus the initial investment

Internal Rate of Return (IRR)0.26%
PV of cash flows$74,088.02
Profitability Index (PI)1.482
Total undiscounted cash flow$100,000.00
Simple payback period2.85years
PV of Cash Flows$74,088.02
Net Present Value$24,088.02

This project has a positive NPV of $24.1K, meaning it is expected to create value at your 10% discount rate.

  • The IRR is 25.86%, which exceeds your 10% hurdle rate, confirming the project clears your return threshold.
  • The Profitability Index is 1.482: for every $1 invested, the project returns $1.48 in present-value terms.
  • The simple (undiscounted) payback period is about 2.9 years.

Next stepConsider also running a sensitivity analysis by adjusting the discount rate up and down by 2-3 percentage points to see how robust the positive NPV is.

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