What discount rate should I use for NPV?

Use the WACC for projects that match the company risk profile. For riskier projects, add a risk premium. For personal investments, use your opportunity cost rate.

If NPV = 0, should I accept the project?

Yes. NPV of 0 means the project exactly earns the cost of capital, neither creating nor destroying value. In a tie between projects, other factors decide.

How does NPV differ from payback period?

NPV accounts for time value of money and all cash flows over the project life. Payback period ignores cash flows after recovery and the time value of money. NPV is theoretically superior.

Net Present Value (NPV) Calculator

Calculate NPV of a series of cash flows discounted at the cost of capital. NPV > 0 means a project creates value; NPV < 0 destroys value. Core capital budgeting tool.

Principal ($)

Annual Rate (%)

Years

Compounding / Year

$ Finance Disclaimer: These calculators are for educational and illustrative purposes only. Results do not constitute financial advice. Consult a licensed financial advisor before making investment or borrowing decisions.

How to Use

Enter the values for the scenario you are assessing. Calculate NPV of a series of cash flows discounted at the cost of capital. NPV > 0 means a project creates value; NPV < 0 destroys value. Core capital budgeting tool. Use the npv calculator result to inform your calculation.

Related Calculators

IRR Calculator

Finance & Accounting

MIRR Calculator

Finance & Accounting

Payback Period

Finance & Accounting

Net Present Value (NPV) Calculator

How to Use

Related Calculators

Frequently Asked Questions

What discount rate should I use for NPV?

If NPV = 0, should I accept the project?

How does NPV differ from payback period?