📊

NPV Calculator India 2026 – Net Present Value & Cash Flow

Use this free NPV Calculator in India to determine whether any investment is profitable — by discounting all future cash flows to their present value today.

Calculate the NPV of an investment by discounting future cash flows to present value.

Initial Investment ($)

Discount Rate (% per year)

Enter annual cash flows (up to 10 years):

Year 1 ($)

Year 2 ($)

Year 3 ($)

Year 4 ($)

Year 5 ($)

Year 6 ($)

Year 7 ($)

Year 8 ($)

Currency

Net Present Value (NPV)

—

Total Cash Flows

—

PV of Cash Flows

—

ROI

—

What is Net Present Value (NPV)?

NPV is a core financial metric used in capital budgeting. It calculates the present value of future cash flows discounted at a required rate of return, minus the initial investment. A positive NPV means the investment creates value; negative NPV means it destroys value.

Formula Used

NPV = -Initial Investment + CF1/(1+r)^1 + CF2/(1+r)^2 + ... + CFn/(1+r)^n

Example Calculation

Example — US — $100K investment, $30K-$40K cash flows over 5 years, 10% rate

PV of Cash Flows = $139,539 | NPV = +$39,539 → Accept the project

Example — India — ₹50L project, ₹12L-₹18L flows over 5 years, 12% discount rate

PV = ₹57.8L | NPV = +₹7.8L → Project adds value

Example — United Kingdom

£60,000 investment, cash flows £15K–£22K over 5 years, 9% discount rate. PV of flows: £78,400 | NPV: +£18,400 → Project adds value | Implied IRR: ~19%

Why Use This Calculator?

NPV is the gold standard for investment decisions because it accounts for the time value of money — a rupee today is worth more than a rupee tomorrow. Companies use NPV to decide which projects to fund, which businesses to acquire, and how to allocate capital.

What discount rate should I use?▾

Use your cost of capital (WACC for companies, required return for individuals). For personal projects: 8–12% is common. For risky ventures: 15–25%.

NPV vs IRR — which is better?▾

NPV is generally preferred as it gives an absolute dollar value of wealth creation. IRR can be misleading for non-conventional cash flows or mutually exclusive projects.

What if NPV is exactly zero?▾

An NPV of zero means the investment earns exactly the discount rate — you recover your cost of capital but create no extra value. The decision depends on strategic factors.

💡 Tip: Always pair NPV analysis with sensitivity testing — try different discount rates to see how robust your investment decision is.