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ReturnLab
Enter an initial investment and a stream of future cash flows — see whether the project clears your required rate of return.
A dollar received in year 3 is worth less than a dollar today, because you could have invested today's dollar and grown it in the meantime. NPV puts every cash flow on equal footing by discounting it back to the present.
A positive NPV means the project's cash flows, discounted at your chosen rate, are worth more than the initial investment — value is created. A negative NPV means the opposite.
Estimate monthly payments with taxes, insurance, and amortization.
OpenProperty price, down payment, tenure — EMI, processing fee, and stamp duty & registration.
OpenCompare loan terms and see total interest paid.
OpenProject growth from deposits and compounding interest.
OpenNet present value
$3,309
Positive NPV — expected to create value
What you entered
Period 0 (initial outlay, not discounted)
$-10,000.00= $-10,000.00Discount the period 1 cash flow
$3,000.00 ÷ (1 + 10%)^1= $2,727.27Discount the period 2 cash flow
$4,200.00 ÷ (1 + 10%)^2= $3,471.07Discount the period 3 cash flow
$5,100.00 ÷ (1 + 10%)^3= $3,831.71Discount the period 4 cash flow
$4,800.00 ÷ (1 + 10%)^4= $3,278.46Sum all discounted cash flows
$-10,000.00 + $2,727.27 + $3,471.07 + $3,831.71 + $3,278.46= $3,308.52Result
Net present value: $3,309
Discounting every future cash flow back to today at 10% gives a net present value of $3,309 — the project is expected to earn more than the discount rate, creating value.