Formula and calculation method
NPV = Σ cash flow at period t / (1 + discount rate)^t. Initial cash flow occurs at t = 0.
Use consistent units for all comparable inputs. The displayed result is rounded; arithmetic is performed with the full available numeric precision. Check your source measurements before relying on the result.
How to use finance calculator
- Set Cash flows by period (initial outlay first). The example below uses -10000, 3000, 4000, 5000.
- Set Discount rate per period (%). The example below uses 8.
- Select Calculate to update the result. Reset restores the illustrated inputs. Copy, print or download your own result if you need a record.
Worked example
Example inputs
- Cash flows by period (initial outlay first)
- -10000, 3000, 4000, 5000
- Discount rate per period (%)
- 8
- Net present value
- 176.29426409
Factors affecting your result
Use consistent units for all comparable inputs. The displayed result is rounded; arithmetic is performed with the full available numeric precision. Check your source measurements before relying on the result.
Changing cash flows by period (initial outlay first) changes the scenario being evaluated. Adjust one input at a time when comparing results, keep a copy of the assumptions, and compare values using the same unit and period. A precise arithmetic result does not make an uncertain assumption precise.
Frequently asked questions
How does the finance calculator work?
NPV = Σ cash flow at period t / (1 + discount rate)^t. Initial cash flow occurs at t = 0.
What inputs does Finance Calculator need?
Enter cash flows by period (initial outlay first), discount rate per period (%). Read the unit labels; percentages are entered as ordinary percentages, not decimal fractions.
How should I interpret the finance calculator result?
Use consistent units for all comparable inputs. The displayed result is rounded; arithmetic is performed with the full available numeric precision. Check your source measurements before relying on the result.
Are my finance calculator inputs uploaded?
No. The calculation runs in this browser. Favorites, recent tool names, theme and formatting preferences may be saved locally, but calculation inputs are not sent to a calculation server or stored by this website. Shared links do not include entered values.
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