When to use this calculator
Find net present value of evenly spaced cash flows, including an initial time-zero amount. The first cash flow occurs now and is not discounted. Periods must be equally spaced.
Explore the investment return calculators for other questions in this topic. For a related calculation, use the Portfolio Rebalance Amount Calculator: Find the amount needed to move one holding to a target portfolio weight.
PUTTING IT INTO PRACTICE
NPV: a worked example
The values below are an illustrative example, not a recommendation. Replace them with measurements or assumptions that match your question.
| Input | Example value |
|---|---|
| Cash flows beginning at time zero | -1000,500,600 |
| Discount rate per period (%) | 10 |
| Result | -49.586777 currency units |
- Check the input labels and enter the example values above.
- Apply the relationship: NPV = sum(cash flow at t/(1+rate)^t), starting at t=0..
- The result is -49.586777 currency units, rounded for display.
How to interpret your result
The first cash flow occurs now and is not discounted. Periods must be equally spaced.
Return measures must cover the same time period before comparison. CAGR annualises two endpoint values but does not model interim cash flows. Current income yield differs from total return or yield to maturity.
Frequently asked questions
Can CAGR handle money added during the period?
The simple endpoint CAGR model does not account for intermediate deposits and withdrawals. Those require cash-flow-aware methods.
When is the npv calculator useful?
Find net present value of evenly spaced cash flows, including an initial time-zero amount. The first cash flow occurs now and is not discounted. Periods must be equally spaced.
How do I use the npv calculator?
Enter cash flows beginning at time zero, discount rate per period (%). The result updates automatically. Use the units shown beside each input; the example values illustrate the method.
Which formula does this calculator use?
NPV = sum(cash flow at t/(1+rate)^t), starting at t=0..
What should I check before using the result?
The first cash flow occurs now and is not discounted. Periods must be equally spaced.
How are results rounded?
Scalar numbers display up to six decimal places, with scientific notation for very large or small values. Text, fraction, date and schedule outputs use the format described on the tool. Intermediate calculations use JavaScript floating-point arithmetic. Keep sensible precision for your measurements.
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