INVESTING / FIVE-YEAR CASH FLOWS

Net Present Value Calculator

Discount five annual cash flows to today, subtract the initial investment, and show whether the entered scenario clears the selected required return.

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Calculation path

Each annual cash flow is divided by one plus the discount rate raised to its year number. Their present values are summed before subtracting time-zero investment.

Calculation path

NPV = sum of each future cash flow / (1 + discount rate)^year - initial investment.

What you provide

Initial investment: Cash paid at time zero.
Annual discount rate: Required return or hurdle rate used to discount future cash flows.
Year 1 cash flow: Net cash flow received at the end of year one.
Year 2 cash flow: Net cash flow received at the end of year two.
Year 3 cash flow: Net cash flow received at the end of year three.
Year 4 cash flow: Net cash flow received at the end of year four.
Year 5 cash flow: Net cash flow received at the end of year five.

What you receive

Net present value
Present value of all five future cash flows
Initial investment and discount-rate context

Use boundary

Choose the maximum decimal places shown. This does not increase source accuracy.

This fixed annual model assumes end-of-year cash flows and does not estimate risk, terminal value, taxes, inflation, or financing.

This is an educational planning estimate. Confirm lender, issuer, tax, accounting, and contractual rules with the relevant provider or qualified adviser before acting.

Net Present Value Calculator

Calculation path

What you provide

What you receive

Choose the maximum decimal places shown. This does not increase source accuracy.

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