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Finance Calculators

NPV Calculator

Verified formula Updated Jun 2026 Private — runs on your device

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₹
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Verified formula Private

Net present value

₹2,41,843

Present value of inflow
₹12,41,843

For general information only — not financial, tax, legal or medical advice. Verify before you rely on it.

How to use the NPV Calculator

The NPV Calculator works out your net present value, along with 1 related figure in an instant. Enter initial investment, future cash inflow and discount rate and the result updates as you type — it is free, needs no sign-up, and runs entirely in your browser so your figures stay private.

  1. Enter the initial investment.
  2. Enter the future cash inflow.
  3. Enter the discount rate.
  4. Enter the years until inflow.
  5. Read off your net present value, together with present value of inflow — the calculator updates automatically, with no button to press.

Formula

The NPV Calculator uses the formula:

Net present value = Future cash inflow ÷ (1 + Discount rate ÷ 100)^(Years until inflow) - Initial investment

Worked example

For example, with initial investment of ₹1,000,000, future cash inflow of ₹2,000,000, discount rate of 1% and years until inflow of 5, the net present value is ₹2,41,843.

Inputs used
Initial investment ₹1,000,000
Future cash inflow ₹2,000,000
Discount rate 1%
Years until inflow 5
Results
Net present value ₹2,41,843
Present value of inflow ₹12,41,843

Results are estimates for educational use, not professional advice.

Key terms explained

Present value
Today's worth of money you will receive in the future, discounted for the time value of money.
Net present value
The present value of future cash flows minus the initial investment (NPV); positive means value is created.

Frequently asked questions

NPV is the present value of future cash flows minus the initial investment. A positive NPV means the investment adds value.

It discounts the future inflow back to today and subtracts the cost. A 20,00,000 inflow in 5 years at 10% has an NPV of about 2,41,843 against a 10,00,000 cost.

It means the discounted returns are less than the cost, so the investment destroys value at that discount rate.

Use your required rate of return or cost of capital. A higher rate lowers the NPV by discounting future cash more heavily.

Enter the initial investment. Enter the future cash inflow. Enter the discount rate. Enter the years until inflow. Read off your net present value, together with present value of inflow — the calculator updates automatically, with no button to press.

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