What does a positive NPV indicate?

A positive NPV indicates that the projected earnings of a project exceed the anticipated costs, showing it is financially viable.

NPV Calculator

Calculate Net Present Value (NPV) for standard cash flow streams.

Live

Parameters

R Reset

Annual Discount Rate (%)Annual interest rate used to discount future cash flows.

8.0%

0.1%100.0%

Cash Flows (comma-separated, first is outlay)Ledger containing dates and amounts of irregular cash flows.

Analytics Dashboard

Net Present Value (NPV)

$1,141.59

Loading chart…

Initial Investment-$10,000.00

Rate Used8.00%

Educational estimate. Not financial advice.

Result Interpretation

Positive net present value of $1,141.59 indicates the project generates returns in excess of the required cost of capital per Corporate Capital Budgeting Guidelines.

Mathematical Explanation

\text{NPV} = \sum \frac{CF_t}{(1+r)^t}

The NPV is $1,141.59.

How to Use the NPV Calculator

Analyze investment viability by discounting future inflows back to present value.

Input variables:

Annual Discount Rate (%): Bounded parameter in the mathematical model.
Cash Flows (comma-separated, first is outlay): Bounded parameter in the mathematical model.

Net Present Value (NPV): Discounted Cash Flow Investments

Master discounted cash flow analysis, discount rates, and how to project net present values of future cash transactions.

Read Full Guide →