ClarityHow to use this tool
- Enter cash flows starting at period 0, discount rate per period.
- Select Calculate to view the result.
- Check the method and assumptions below before using the result.
Input reference and sample values
Use the units and choices shown for each field. Sample values are provided for practice, not as recommendations.
| Input | Format and units | Sample |
|---|---|---|
| Cash flows starting at period 0 | Keep the structure and separators shown in the sample. Line breaks are retained in this input. | -1000, 400, 400, 400 |
| Discount rate per period | Numeric value. Unit: %. Minimum: -90. Maximum: 100. | 10 |
Result for these sample inputs
-5.25920361 currency units
- Undiscounted net cash flow
- 200
- Number of periods after period zero
- 3
Positive NPV means this scenario exceeds the chosen discount rate under the entered cash-flow assumptions.
Select Try the example in the form to load these values and calculate them again. This replaces the current form inputs. Compare the result with the method and worked explanation below.
The method, explained
NPV = sum of cash flow at period t divided by (1 + rate)ᵗ, starting with period zero. Negative entries represent payments; positive entries represent receipts.
Using cash flows starting at period 0 = -1000, 400, 400, 400, discount rate per period = 10 %, the result is -5.25920361 currency. Change these example inputs to match your task; use the method above to check each step.
What to keep in mind
Cash flows must be equally spaced and the discount rate must match that interval. No automatic tax, inflation or probability adjustment. A scenario calculation using your inputs, before unlisted fees or taxes. It is not a quoted product rate or personalized recommendation.
Methodology maintained by ClarityKit. How these tools are built and checked.