How this calculation works
Discount a sequence of annual cash flows and compare their present value with the initial investment. The result is calculated locally in your browser from the visible inputs, and the method below remains available for checking.
Worked example
A ₹5 lakh outlay is compared with four annual inflows discounted at 10%.
Assumptions and limits
- Cash flows occur at the end of each year and the discount rate remains constant.
Questions people ask
How does the NPV Calculator work?
It applies this displayed method: NPV = −initial investment + Σ(cash flow in year t ÷ (1 + discount rate)ᵗ). Profitability index = present value of future cash flows ÷ initial investment. Values stay in your browser and are not submitted to a server.
What should I check before using the NPV result?
Cash flows occur at the end of each year and the discount rate remains constant. This is an educational projection. Returns, rates, inflation, tax treatment and product rules can change.
Does this NPV calculator save my information?
No. Calculation inputs are processed on this device. Sharing creates a URL only when you choose the share action.