Net Present Value Calculator
Discount a level annual cash flow and a terminal value against an initial investment.
Example result
- Present value of future flows
- 11,372.36
Annual cash flows occur at year-end and remain constant. The discount rate is user supplied; risk, tax and varying cash flows need a fuller model.
How to calculate it
Annual cash flows occur at year-end and remain constant. The discount rate is user supplied; risk, tax and varying cash flows need a fuller model.
Worked example
This is an illustrative scenario, not a market benchmark. Select “Reset to example” to reproduce it in the calculator.
- Initial investment
- 10,000 currency units
- Annual net cash flow
- 3,000 currency units
- Number of years
- 5 years
- Annual discount rate
- 10 %
- Terminal value at final year
- 0 currency units
Net present value: 1,372.36
Net Present Value FAQ
What does a positive NPV mean?
Under these cash-flow and discount-rate assumptions, discounted benefits exceed the initial cost. It does not guarantee an actual return.
What does this calculation leave out?
Annual cash flows occur at year-end and remain constant. The discount rate is user supplied; risk, tax and varying cash flows need a fuller model.
Are my inputs saved or sent to a server?
Calculations run in your browser. We do not send your inputs or results to our server or analytics. A comparison stays in this tab until it is refreshed. A CSV is saved only when you choose to download it. See our privacy policy for ordinary hosting and optional analytics data.
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