calqone

Start / Business / Net Present Value

Net Present Value

Values a project by discounting future cash flows to today.

Interactive inputs coming — use the formula and example below.

Rechenbeispiel

A positive NPV suggests the project adds value.

So funktioniert's

  • Use the formula below with your own figures.

Die Formel

NPV = Σ cash flow ÷ (1+r)ⁿ − investment.

Rechenbeispiel

A positive NPV suggests the project adds value.

Häufige Fragen

What rate to use?

Your cost of capital or required return.

Positive NPV?

Generally worth pursuing.

Tipps

  • Know your break-even before scaling spend.
  • Separate margin from markup when pricing.
  • Discount future cash flows to value projects.

Begriffe

Break-even
Where revenue covers costs.
Margin
Profit as a percent of price.
NPV
Discounted value of future cash flows.