Signs and dates
Enter money paid out as negative and money received as positive. Repeated dates are allowed. Use a zero for a skipped period rather than removing its row.
Investing
NPV Calculator
Calculate net present value from your initial investment, future cash flows and discount rate. Compare discounted cash flows for equal periods or exact dates.
NPV
$0.00
Undiscounted cash-flow total
$210.00
Discount rate
10%
Cash-flow count
3
Net present value of all flows
$0.00
Result comparison
NPV: $0.00NPV · $0.00
Undiscounted cash-flow total: $210.00Undiscounted cash-flow total · $210.00
Net present value of all flows: $0.00Net present value of all flows · $0.00
NPVNet present value of all flows
Discounted cash flows
Detailed values use the same assumptions as the summary above.
| Period | Cash flow | Discount factor | Present value |
|---|---|---|---|
| 0 | -$1,000.00 | 1 | -$1,000.00 |
| 1 | $0.00 | 0.909 | $0.00 |
| 2 | $1,210.00 | 0.826 | $1,000.00 |
Enter your own discount rate. Use negative amounts for investments and positive amounts for receipts; include taxes and project costs in your cash flows.
Calculation method
Formula and method
The first amount is included without discounting. For equal periods, t is the row number starting at zero, and IRR is a return per such period. Convert monthly IRR to an effective annual return with (1 + IRR/100)^12 − 1.
Detailed guide
Discount an investment project’s cash flows
NPV expresses future receipts minus investments in today’s money. A positive value means the entered cash flows exceed the chosen required return; a negative value means they fall short at that discount rate.
Choose equal periods for annual or monthly flows. For irregular receipts, enter dates in ascending order. For example, −1000 today and 1210 two years later have a 10% IRR and a zero NPV at a 10% discount rate.
Formula and method
NPV = Σ CFₜ / (1 + r)^t, including CF₀
The first amount is included without discounting. For equal periods, t is the row number starting at zero, and IRR is a return per such period. Convert monthly IRR to an effective annual return with (1 + IRR/100)^12 − 1.
With dates, t is the actual number of days since the first date divided by 365, including leap days. XIRR is an effective annual rate. The table shows amounts, discount factors and present values.
Using the results
Comparing projects
IRR compares percentage returns; NPV compares absolute value. Different investment sizes or multiple changes in cash-flow signs can make an IRR-only comparison incomplete.
Frequently asked questions
What is the difference between IRR and XIRR?
IRR assumes equally spaced periods. XIRR uses actual dates and expresses the result as an effective annual rate.
Why does the first row use period zero?
It represents the initial investment or cash received today. Excel’s NPV usually adds the initial cash flow separately; this calculator includes it in the first row.
Can the return be negative?
Yes. If receipts fall short of the investment, the unique IRR can be negative. NPV can also be negative when IRR is positive but below the required return.
Data sources
These sources explain the concepts used in the calculation. Check the applicable contract or issuer documents for your actual parameters.
Updated: October 1, 2026
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