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NPV Calculator

This NPV calculator finds the net present value of an investment's cash flows at your chosen discount rate — the dollar amount of value the investment creates (or destroys) once every future cash flow is translated into today's terms. Enter your cash flows and required rate of return to see the result.

₹10,00,000

The upfront amount invested — entered as a positive number, treated as an outflow.

₹2,50,000

Net cash received in year 1 — 0 if none.

₹3,00,000

Net cash received in year 2.

₹3,50,000

Net cash received in year 3.

₹3,50,000

Net cash received in year 4.

₹4,00,000

Net cash received in year 5 — 0 if the project ends earlier.

10.00%

Your required rate of return, or cost of capital.

₹2,25,590

Positive means the investment creates value at this discount rate; negative means it destroys value.

Total cash returned (undiscounted)₹16,50,000

Frequently asked questions

What discount rate should I use?+

Your realistic cost of capital or required rate of return — for a business, often the weighted average cost of capital (WACC); for a personal investment decision, your realistic alternative investment return.

Is a positive NPV always a 'go' decision?+

It means the investment clears your required return at your chosen discount rate — a strong signal, but real decisions often also weigh risk, strategic fit, and cash flow assumptions' reliability beyond the single NPV number.

How is NPV different from IRR?+

NPV gives a dollar amount of value created at a chosen discount rate; IRR gives the rate at which that value is exactly zero. NPV is generally preferred for comparing investments of different sizes, since IRR (a percentage) can favor a smaller, higher-rate project over a larger, more valuable one.

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