Net Present Value (NPV) Calculator

News: 02/20/2011 This calculator has been enhanced to allow users to optionally enter a description for each cash flow line. There are also now additional ways to insert, copy and delete or clear cash flows. So data entry will even be easier. Finally, not only can the results be printed or saved, they can now be exported to a CSV file. Registered users of this calculator and SolveIT! v6.0 will be able to get free upgrades.

One method of evaluating the feasibility of a capital expenditure decision is to use the Net Present Value (NPV) method of evaluation. The present value of the cash flows are determined using your MINIMUM rate of return (Discount Rate) on an investment that you will accept. The calculated result, if positive, tells you that you are exceeding your minimum requirements and a negative value tells you that you are not achieving your objective.

This calculator is very handy for financial planning and money management. If, for example, you want to know whether a prospective rental property will give you a 15% return on your money, then you would enter the projected cash flow from rents (most likely on an annual basis) and the expected expenses and taxes along with the initial investment. If the calculated result is positive, you are achieving a 15% return.

This calculator supports irregular length periods and exact date data entry for the cash flows. There is also no need to manually enter every cash flow. The calculator can optionally be set so that the prior entered value is used as the default value for the next period. This makes data entry a snap!

The IRR calculator was improved upon with the release of SolveIT! v6.0. It is now possible to import text files. Rather than typing in all the dates and cash flows, you can create a file with notepad for example and import your data. Some users will find this an easier way to enter data.