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Net Present Value (NPV) Calculator

Enter the initial investment, the discount rate and the yearly cash flows. The project’s net present value, discounted payback and internal rate of return are worked out.

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Your cost of money or the lowest return you accept.

One year per line; use minus for outflows.

Net present value25,257.74₺Positive: the project beats this rate
  • Present value of the flows1,025,257.74 ₺
  • Initial investment1,000,000.00 ₺
  • Discounted payback3.9 years
  • Internal rate of return36.44%
  • Net present value25,257.74 ₺
Present value by year 4

How it is calculated

Net present value discounts future cash flows to today by the time value of money and sets them against the investment. A positive NPV means the project earns more than the chosen rate; a negative one, less. With high inflation, choose the discount rate accordingly.

FormulaNBD = −Yatırım + Σ Nₜ ÷ (1 + r)^tNₜ: cash flow in year t · r: yearly discount rate (your cost of money or lowest acceptable return).

Example

A ₺1,000,000 project returning 400,000, 500,000, 600,000 and 700,000 has an NPV of ₺25,257.74 at 35%: it beats that rate. Its IRR is 36.44%.

Frequently asked questions

Which discount rate should I use?

Your cost of money: for companies the weighted average cost of capital, for individuals the return on the best alternative you give up (a deposit rate, say).

If NPV and IRR disagree, which wins?

When projects differ in size, NPV is more reliable; IRR ignores scale and can have more than one value when flows change sign repeatedly.

Internal Rate of Return (IRR) CalculatorCalculate the internal rate of return from cash flows, compare it with your hurdle rate and get warned when more than one IRR is possible.CAGR CalculatorCalculate the compound annual growth rate between two values, with the total growth, the multiple and a forward projection.Savings CalculatorWork out what a regular monthly saving grows to with compound returns, how much is paid in, the returns and the time to reach a target.Real Return CalculatorCompare a deposit, fund or stock return with inflation and tax; calculate the real return by the Fisher equation and the value in today’s money.