How to use the Net Present Value Calculator

Calculate NPV of a project with constant annual inflows, a discount rate and terminal value.

Calculation formula

NPV = −initial investment + Σ(annual cash inflow ÷ (1+r)^year) + salvage ÷ (1+r)^years.

Recommended steps

1. Enter values using the units shown beside each field.
2. Review whether the example assumptions match your situation.
3. Run the calculator and compare the key metrics.
4. Use the source data or official rates when precision matters.

Known limitations

Uses equal annual cash flows at each year-end and a constant discount rate; project-specific timing and tax effects require separate modeling.