{"success":true,"version":"v1","request":{"tool":"get_calculator_schema","calculator_id":"npv"},"result":{"entity_type":"calculator","id":"npv","calculator_id":"npv","canonical_url":"https://tttkmbb.com/finance/npv","name":"NPV Calculator","title":"NPV Calculator – Net Present Value and Profitability Index of a Cash-Flow Series","category":"finance","category_name":"Finance","tool_name":"calculate_npv","featured_mcp_tool":false,"description":"Discounts a series of end-of-period cash flows at a required rate of return, subtracts the initial investment and reports the net present value, the present value of each cash flow and the profitability index.","use_when":"You are appraising a project or investment with an upfront cost followed by periodic cash flows and want to know whether it creates value at a given discount rate.","do_not_use_when":"You want the rate that makes NPV zero (use irr), the time to recover the outlay (use payback-period), or a single future amount (use present-value).","inputs":[{"name":"discount_rate_percent","label":"Discount rate","type":"number","unit":"% per period","required":true,"min":-99,"max":1000,"description":"Required rate of return or cost of capital per period in percent (annual for yearly cash flows).","example":10},{"name":"initial_investment","label":"Initial investment","type":"number","required":true,"min":0,"max":1000000000000000,"description":"Outlay at time 0, entered as a positive number.","example":1000},{"name":"cash_flows","label":"Cash flows","type":"number_list","required":true,"description":"Net cash flow at the end of periods 1, 2, 3 … (negative values allowed).","example":[500,400,300]}],"outputs":[{"name":"npv","label":"Net present value","type":"number","decimals":2,"description":"Σ CF_t / (1 + r)^t − initial_investment."},{"name":"present_value_of_cash_flows","label":"PV of cash flows","type":"number","decimals":2,"description":"Σ CF_t / (1 + r)^t (before subtracting the investment)."},{"name":"profitability_index","label":"Profitability index","type":"number","decimals":4,"description":"present_value_of_cash_flows / initial_investment (only when the investment is > 0); above 1 means NPV > 0."},{"name":"discounted_cash_flows","label":"Discounted cash flows","type":"number_list","decimals":2,"description":"Each CF_t / (1 + r)^t in order."},{"name":"total_undiscounted_cash_flows","label":"Sum of cash flows","type":"number","decimals":2,"description":"Σ CF_t without discounting."},{"name":"net_undiscounted_gain","label":"Undiscounted gain","type":"number","decimals":2,"description":"Σ CF_t − initial_investment (NPV at 0 %)."},{"name":"decision","label":"Decision","type":"string","decimals":4,"description":"'Accept' when NPV > 0, 'Reject' when NPV < 0, 'Indifferent' at 0."}],"input_schema":{"type":"object","properties":{"discount_rate_percent":{"description":"Required rate of return or cost of capital per period in percent (annual for yearly cash flows). 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Inputs supplied by the caller determine the output."},"examples":[{"name":"−1,000 then 500, 400, 300 at 10 %","inputs":{"discount_rate_percent":10,"initial_investment":1000,"cash_flows":[500,400,300]},"expected":{"npv":10.52,"present_value_of_cash_flows":1010.52,"profitability_index":1.0105,"discounted_cash_flows":[454.55,330.58,225.39],"total_undiscounted_cash_flows":1200,"net_undiscounted_gain":200,"decision":"Accept (NPV > 0)"},"url":"https://tttkmbb.com/api/v1/calculate/npv?discount_rate_percent=10&initial_investment=1000&cash_flows=500%2C400%2C300"},{"name":"−10,000 then 3,000, 4,000, 5,000, 2,000 at 8 %","inputs":{"discount_rate_percent":8,"initial_investment":10000,"cash_flows":[3000,4000,5000,2000]},"expected":{"npv":1646.35,"present_value_of_cash_flows":11646.35,"profitability_index":1.1646,"decision":"Accept (NPV > 0)"},"url":"https://tttkmbb.com/api/v1/calculate/npv?discount_rate_percent=8&initial_investment=10000&cash_flows=3000%2C4000%2C5000%2C2000"}],"faq":[{"q":"Which discount rate should I use?","a":"The return available on an alternative of similar risk: a company's weighted average cost of capital for projects, or a hurdle rate. A higher rate lowers NPV."},{"q":"How do I handle monthly cash flows?","a":"Use a monthly rate: annual_rate/12 for a nominal rate, or (1 + annual)^(1/12) − 1 for an effective one, and list one cash flow per month."}],"tags":["npv","net present value","discounted cash flow","dcf","profitability index","capital budgeting"],"related":[{"calculator_id":"irr","reason":"Rate of return that sets NPV to zero."},{"calculator_id":"payback-period","reason":"Time to recover the initial investment."},{"calculator_id":"present-value","reason":"Discount a single amount."}],"links":{"html":"https://tttkmbb.com/finance/npv","markdown":"https://tttkmbb.com/finance/npv.md","json":"https://tttkmbb.com/finance/npv.json","api":"https://tttkmbb.com/api/v1/calculate/npv","schema":"https://tttkmbb.com/api/v1/calculators/npv","openapi":"https://tttkmbb.com/openapi.json","mcp":"https://tttkmbb.com/mcp"},"version":"v1","updated_at":"2026-09-24"},"timestamp":"2026-09-24T01:57:52Z"}