Evaluate project profitability with our free NPV Calculator. Instantly calculate Net Present Value using benchmarks. Learn how to discount future cash flows and make smarter investment decisions for your business or property.
NPV Calculator
Evaluate project profitability
Net Present Value
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How to calculate the NPV?
To calculate NPV, you find the Present Value (PV) of all future cash inflows and subtract your initial investment.
The Formula:
r: The discount rate (e.g., 0.10 for 10%).
t: The year number.
How to calculate NPV for 4 years?
Calculating for a 4-year period involves discounting each year's income back to "today's shillings" and summing them up.
Year 1: Income ÷ (1 + r)¹
Year 2: Income ÷ (1 + r)²
Year 3: Income ÷ (1 + r)³
Year 4: Income ÷ (1 + r)⁴
Final Step: Add these four values together and subtract what you spent at the start.
