Work out locally the net present value (NPV) of an investment from initial outlay, annual cash flow, discount rate and term - no upload.
No. Everything runs in your browser - your file never leaves your device. How this is verifiable
The net present value (NPV) is the central figure of investment appraisal. It answers the question: is an investment worthwhile once you account for the fact that future money is worth less than money today? All future cash flows are discounted to the present at the discount rate and the initial investment is subtracted. A net present value above zero means the investment earns more than the required return and creates value.
The calculation runs entirely locally in your browser, in pure JavaScript - nothing is uploaded and nothing is stored. The present value of the inflows is the annual cash flow times the annuity factor; the net present value is that present value minus the initial investment. The profitability index relates the present value of the inflows to the investment (above 1 means a positive NPV). This calculator assumes a constant annual cash flow. Change an input and everything updates instantly.
An honest note: this is a model with a constant annual cash flow - real cases often have different amounts each year, a residual value at the end and taxes. A realistic discount rate matters most (your required minimum return or cost of capital); it drives the result strongly. For the return itself use the IRR calculator, for the recovery time the payback calculator. Amounts in euros as an example - the maths applies to any currency. Not investment advice.
| Input formats | Form inputs (no file) |
|---|---|
| Processing | Locally in your browser (JavaScript) |
| File upload | None |
Limitations: A model with a constant annual cash flow - without varying yearly amounts, residual value or taxes. The discount rate drives the result strongly, so choose it realistically. For the return use the IRR calculator, for the recovery time the payback calculator. Amounts in euros as an example - the maths applies to any currency. Not investment advice.
No. The calculation runs entirely locally in the browser (pure JavaScript); nothing is sent or stored.
The investment earns more than the return required by the discount rate and so creates value. At zero it earns exactly the required return; below that it destroys value. Worked example: a 10,000 euro investment returning 2,500 euros a year for 5 years yields an NPV of about +531 euros at a 6 percent discount rate - the investment is narrowly worthwhile.
Your required minimum return or your cost of capital (often the rate of a comparable investment or of the loan). It is the most important and most sensitive input.
The NPV is a money amount at the chosen rate; the internal rate of return (IRR) is the rate at which the NPV is exactly zero. The two complement each other.