NPV Calculator
Calculate Net Present Value (NPV) in your preferred currency. Evaluate investment profitability with accurate cash flow analysis and discount rates.
Currency & Basic Parameters
Select your currency for all calculations
Cash outflow at time period 0
Required rate of return or cost of capital
Projection period for cash flows
Cash Flow Projections
Advanced Options
Annual inflation adjustment
Corporate tax rate
NPV Results
Enter cash flows and click Calculate
Results will appear here
Investment Decision
Calculate NPV to see recommendation
Sensitivity Analysis
Run calculation to see sensitivity chart
Quick Scenarios
What is NPV (Net Present Value)?
Net Present Value (NPV) is a fundamental financial metric used to evaluate the profitability of an investment or project. It represents the difference between the present value of cash inflows and the present value of cash outflows over a specific time period. A positive NPV indicates that the projected earnings (in present dollars) exceed the anticipated costs, making it a potentially profitable investment.
NPV Formula
Why Use Multiple Currencies?
- Global Investments: Analyze projects across different countries
- Currency Risk: Assess impact of exchange rate fluctuations
- Comparative Analysis: Compare investments in different currencies
- Financial Reporting: Prepare reports in local or reporting currency
How to Use This NPV Calculator
1. Select Currency
Choose your preferred currency from 10+ options including USD, EUR, GBP, JPY, INR
2. Enter Parameters
Input initial investment, discount rate, and cash flow projections for each period
3. Adjust Options
Configure advanced options like terminal value, inflation rate, and tax rate
4. Analyze Results
Review NPV, IRR, sensitivity analysis, and get investment decision recommendation
Key Features of This NPV Calculator
Multi-Currency Support
- 10+ major world currencies
- Automatic currency symbol updates
- Consistent currency formatting
- Real-time conversion display
Comprehensive Analysis
- NPV calculation with precision
- IRR (Internal Rate of Return)
- Sensitivity analysis charts
- Profitability Index (PI)
Advanced Tools
- Cash flow growth rate application
- Terminal value estimation
- Tax and inflation adjustments
- Export to CSV functionality
Frequently Asked Questions
How does currency selection affect NPV?
Currency selection changes the display format and symbols but doesn't affect the underlying calculation. NPV is calculated based on the numerical values you enter. If you're analyzing investments in different currencies, ensure you're using consistent exchange rates for accurate comparisons.
What discount rate should I use?
Use your company's Weighted Average Cost of Capital (WACC) for corporate projects. For personal investments, use your minimum acceptable return. Typical ranges: 8-12% for established businesses, 15-25% for startups, 3-7% for government projects, adjusted for inflation expectations.
How accurate are the IRR calculations?
Our calculator uses both Newton-Raphson and binary search methods for accurate IRR calculation. It's precise to 0.00001 (0.001%) for most cash flow patterns. For complex cash flows with multiple sign changes, we provide the most economically meaningful IRR.
Can I save and export my analysis?
Yes! You can export cash flows to CSV for use in Excel, copy results to clipboard, save analysis to browser storage, and print professional reports. All calculations are performed locally in your browser for privacy and security.