Present Value Calculator — NPV, IRR & Investment Analysis

Present Value & NPV Calculator

Discount future cash flows to find today's value of an investment

What is this? This calculator tells you what future money is worth today. If someone offers you $10,000 in 5 years, how much is that actually worth right now, given a 7% annual return you could earn elsewhere? It also calculates NPV (Net Present Value) and IRR (Internal Rate of Return) — the standard metrics for evaluating any investment.

Who it's for: Investors evaluating business purchases, real estate deals, stock dividends, or any investment with cash flows spread over time. Also useful for comparing two investments with different payment schedules.

Discount Rate & Initial Investment

Initial Investment ($)

Discount Rate / Required Return (%)

Cash Flows

Year 1: /yr

Year 2: /yr

Year 3: /yr

Year 4: /yr

Year 5: /yr (incl. exit)

Results

Net Present Value (NPV)

—

PV of cash flows - investment

Internal Rate of Return

—

annual return rate

Payback Period

—

years to break even

Total Cash Flows (undiscounted)

—

sum of all CFs

Total PV of Cash Flows

—

today's value of CFs

Profit Multiple

—

money earned / invested

Year-by-Year Discounted Cash Flow

NPV assumes cash flows are received at year-end. IRR is calculated via Newton-Raphson iteration. Consult a financial advisor for major investment decisions.

Investment & Net Present Value Tools

Tools that pair well with this calculator — selected by our team.

Betterment →

$1,250/ref (funded $50K+)

Wealthfront →

$100/ref through Impact

Fidelity →

No minimums, zero commissions

Tool	Best For	Network
Betterment	$1,250/ref (funded $50K+)	Impact
Wealthfront	$100/ref through Impact	Impact
Fidelity	No minimums, zero commissions	Direct

We may earn a commission if you click above. Calculator is free to use.

Frequently Asked Questions

What is net present value (NPV)?

NPV = sum of all present values of cash flows minus the initial investment. A positive NPV means the investment adds value — take it. A negative NPV means the investment destroys value — reject it. Use NPV to compare mutually exclusive investments.

What discount rate should I use?

Use your opportunity cost — what you could earn elsewhere with similar risk. For personal finance: 5-7% (stock market historical return). For business: your weighted average cost of capital (WACC) or project hurdle rate.

What is the difference between NPV and IRR?

NPV gives the dollar value added or lost. IRR gives the percentage return. IRR is useful for comparing investments of different sizes. NPV is better when capital is limited — it tells you the absolute value created.