# Net Present Value Calculator

Calculate the net present value of your investments with our easy-to-use NPV calculator. Accurately determine the profitability of your projects and make informed financial decisions. Try it now!

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## Discount Rate

Discount rate should be entered in the decimal format. For example, if discount is 12% put 0.12

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## Cash Flows

Cash Flow should start with the same initial investment and a negative sign

## Net present Value

Net Present Value (NPV) is a financial metric that calculates the sum of all cash flows, both positive and negative, generated by a project or investment, discounted to the present value. It is used to determine the profitability of an investment or project by comparing the present value of cash inflows to the present value of cash outflows.

The NPV formula is: NPV = (CF1/(1+r)^1) + (CF2/(1+r)^2) + ... + (CFn/(1+r)^n) - initial investment.

Where CF is cash flow, r is the discount rate and n is the number of periods. A positive NPV indicates that an investment is expected to generate more cash flow than the cost of the investment, making it a good investment. A negative NPV indicates that the investment is expected to generate less cash flow than the cost of the investment, making it a poor investment.