What is the Net Present Value (NPV) Calculator?

The NPV Calculator is a financial tool that helps users evaluate the profitability of an investment by calculating the present value of expected future cash flows, discounted at a specified rate, minus the initial investment. By entering the investment amount, discount rate, and projected cash flows, the tool instantly computes the net present value and indicates whether the investment is profitable, not profitable, or break-even. This is particularly useful for investors, business analysts, and students to make informed financial decisions and assess the value of long-term projects.

How to Use:

1. Enter Initial Investment (PKR): Type the amount invested at the start.
2. Enter Cash Flows: List expected cash inflows for each period, separated by commas.
3. Enter Discount Rate (% per period): Provide the rate used to discount future cash flows.
4. Click “Calculate”: The tool computes the net present value using the standard NPV formula.
5. Review Result: The output shows the initial investment, discount rate, cash flows, calculated NPV, and the investment status along with the formula used.