🎲 Fun & Lifestyle
NPV Calculator
Net Present Value of a series of cashflows.
Enter values to see your result
Frequently asked questions
What does NPV > 0 mean?
Positive NPV means the project's expected cashflows, discounted at your required rate of return, exceed the initial investment. The project creates economic value.
What discount rate to use?
Typically the company's weighted average cost of capital (WACC) or your required rate of return for comparable-risk investments.
NPV vs IRR?
NPV gives you rupee value created. IRR gives you a % rate. NPV is generally preferred for decision-making because it's additive and handles differently-sized projects better.
What is Profitability Index?
PI = PV of future cashflows / Initial investment. PI > 1 means positive NPV. PI is useful for ranking projects when capital is limited.