Keep the initial cost at time zero
Net present value subtracts the initial outlay from the present value of all later cash flows. Enter the initial cost as a positive amount in its own field. It is subtracted exactly once. The first cash-flow line is one period later, and negative lines represent additional future outflows.
A break-even calculation
With an initial outlay of $1,000 and a $1,100 receipt one year later, a 10% discount rate gives a discounted receipt of $1,000 and NPV of zero. A zero NPV means the specified flows exactly meet that discount assumption. It does not mean the project has no cash profit or no risk.
Interpret the sign cautiously
Positive NPV means discounted modeled receipts exceed the modeled costs at the chosen rate. Negative NPV means the opposite. Neither sign verifies the reliability of projected cash flows, determines financing availability or incorporates risks that are absent from the inputs. Review the cash-flow table before relying on a headline.
Questions about this calculation
How can I check the inputs behind the result?
Open “Show calculation & assumptions” for the formula and timing conventions, then inspect the breakdown. Export CSV to keep the last calculated inputs and numerical results together.
Does this include taxes or changing market returns?
No tax calculation or variable market-return path is included. The task-specific assumptions above describe the scope. Calculated values are conditional on the inputs, not personalized recommendations.
Learn more
Start with the step-by-step future value formula guide.
Open the formula guide →How to calculate future value · Spreadsheet calculations · All learning guides
Use these figures to explore assumptions. Actual interest, returns, fees, taxes and purchasing power can differ.