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Net Present Value (NPV / VAN) Calculator

Evaluate project financial viability by discounting projected annual cash flows at hurdle discount rate (%) minus initial cash outlay.

Input Parameters

Instant Calculation Result

Estimated Output
Active in Real-Time

Adjust values on the left to calculate live results.

Formula: NPV Formula: NPV = -InitialOutlay + Sum[ CashFlow_t / (1 + DiscountRate)^t ].

In-Depth Guide & Mathematical Methodology

📊 NPV Decision Rule

If NPV > 0, the project creates net economic value and should be accepted. If NPV < 0, the project destroys value and should be rejected.

Frequently Asked Questions (FAQ)

What is the Net Present Value (NPV / VAN) Calculator and how does it work?

Evaluate project financial viability by discounting projected annual cash flows at hurdle discount rate (%) minus initial cash outlay.

How do I use this Net Present Value (NPV / VAN) Calculator?

Enter initial cash investment outlay and active currency. Set annual discount rate (%). Enter projected cash flow inflows for Year 1, Year 2, and Year 3. View calculated Net Present Value (NPV).

What mathematical formula is used in this calculation?

NPV Formula: NPV = -InitialOutlay + Sum[ CashFlow_t / (1 + DiscountRate)^t ].

Is the Net Present Value (NPV / VAN) Calculator on FindCalculator free to use?

Yes, all 330+ interactive tools on FindCalculator.online are 100% free, run directly in your browser without registration, and do not store your private calculation data.

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