NPV Calculator
Net present value, IRR, and profitability index PI = PV of inflows ÷ initial investment.
Annual Cash Flows (Year 1–10)
Net Present Value (NPV)+$24,088.02Investment adds value
IRR25.86%
Payback Period3.85 yr
Profitability index1.482
Cash flow detail (undiscounted vs discounted)
| Year | Cash Flow | Discounted |
|---|---|---|
| 0 | -$50,000.00 | -$50,000.00 |
| 1 | +$15,000.00 | +$13,636.36 |
| 2 | +$18,000.00 | +$14,876.03 |
| 3 | +$20,000.00 | +$15,026.30 |
| 4 | +$22,000.00 | +$15,026.30 |
| 5 | +$25,000.00 | +$15,523.03 |
NPV = Σ CFₜ / (1+r)^t − I₀. Profitability index = (NPV + I₀) / I₀, which is the present value of inflows divided by the initial investment. A PI above 1 matches a positive NPV. IRR uses Newton–Raphson.