Skip to content
Toolspire

Calculators

NPV Calculator

NPV Calculator is part of Toolspire and is ready as soon as this page loads. Spend ₹1,000, receive ₹400 at the end of each of 3 years, discount at 10%. The present value of the three cheques is about ₹994.74, so NPV is about −₹5.26.

Runs in this tabFreeNo account

On this page

What you can do here

Equal cheques only

Year 3 cannot be larger than year 1 on this page. XIRR is the tool for an uneven dated list.

Year-end timing

The first cheque is one year away, so it is divided by 1 + rate, not left undiscounted.

The sign is the decision sketch

Negative means the rate you demanded was not met. It is not a rupee loss in the cash tin.

The sequence

How to use the NPV Calculator

  1. 1

    Put the outflow as a positive cost

    The page subtracts it. Do not type the cost as a negative or it will be added.

  2. 2

    Use one yearly rate

    10 means 10% a year. The cash boxes are yearly, not monthly.

  3. 3

    Try 0% as a check

    NPV should become total cash in, minus the cost. If it does not, a box is in the wrong unit.

Worth knowing

  • NPV Calculator on Toolspire: NPV = −cost + the present value of an annuity of equal year-end flows.
  • ₹1,000 out, ₹400 a year for 3 years at 10% gives an NPV of about −₹5.26.
  • At 0% the NPV is cash flow × years − cost. The sample would be ₹200.
  • A negative NPV means the discounted inflows do not cover the cost at the rate you typed.

The three cheques are not worth ₹1,200 today

Three year-end payments of ₹400 add to ₹1,200 in nominal rupees. At 10% they are worth 400/1.1 + 400/1.21 + 400/1.331, about ₹994.74. Subtract the ₹1,000 you spend now and the net present value is about −₹5.26. A different rate flips the sign. The page will not pick the rate, and it will not accept a different amount each year.

FAQ

Questions about NPV Calculator

Where does NPV Calculator run?

NPV Calculator runs in this tab on Toolspire. What you type or drop in is not sent to us and is not stored on a server.

What is the NPV of −1000, then 400 for 3 years at 10%?

About −₹5.26. The inflows discount to about ₹994.74.

What is it at 0%?

₹200. You receive ₹1,200 and spent ₹1,000, and waiting is free.

Why is a negative NPV not “I lose ₹5”?

It means the project misses your 10% hurdle by a present-value gap of about ₹5. The cash still comes in.

Can the yearly amounts differ?

Not here. Use the XIRR page for dated amounts that are not equal.

Keep going

Related tools

Present Value CalculatorNewDiscount a future lump sum back to today with present value = future ÷ (1 + rate) raised to the number of years. Open Present Value Calculator on Toolspire.CalculatorsPayback Period CalculatorNewPayback Period Calculator on Toolspire. Divide an upfront cost by the steady monthly net cash it returns. ₹12,000 recovered at ₹1,000 a month takes 12 months.CalculatorsCAGR CalculatorNewFind the compound annual growth rate from a starting value, an ending value and the number of years, plus the total gain. Open CAGR Calculator on Toolspire.CalculatorsEMI CalculatorNewEMI Calculator on Toolspire. Calculate your loan EMI, total interest and full repayment schedule instantly. See yearly charts.CalculatorsBMI CalculatorNewBMI Calculator on Toolspire: Enter height in feet or cm and weight in kg or lb to see your BMI, WHO or Asian (Indian) category and healthy weight range.CalculatorsAge CalculatorNewAge Calculator on Toolspire. Calculate your exact age in years, months and days, the next birthday countdown and age on any date.Calculators

Open the full directory

Last updated Report a problem or suggest a feature