Wealth Engine

A data-driven planning guide specifically for Net Present Value (NPV) Calculator

Calculate the Net Present Value of any investment or business project. Compare future cash flows in today₹s money to make rational capital allocation decisions.

Real-World Scenarios

Sample 1
₹10L Project, ₹3L/year Cash Flow (5 Yrs)
NPV = +₹1.37L at 10%

Positive NPV means the project earns more than the 10% discount rate—invest in it.

Sample 2
Same Project at 15% Discount Rate
NPV = -₹94,000

If you require 15% returns, this project is not worth pursuing—negative NPV.

Professional Strategy Insights

  • Use NPV for all major capital decisions: property purchase vs renting, new business ventures, and even education investment (compare salary upside vs course cost).
  • The discount rate you use in NPV should equal your opportunity cost—typically 12% (Nifty CAGR) for most Indian retail investors.

Frequently Asked Questions

What is Net Present Value?

NPV is the sum of present values of all future cash flows from an investment, minus the initial investment. A positive NPV means the investment adds value.

What discount rate to use in India?

Use 10-12% for most retail investment decisions (matching Nifty expected return). For startup/high-risk projects, use 20-25%.

eCalcy Editorial Team

Verified Expert

Finance Research & Editorial Board, eCalcy

Financial Technology Specialists · RBI, SEBI & IRS Verified Calculators

✓ Institutional Audit Protocol 2026

Reviewed: April 2026

Math Accuracy
99.9%
Data Source
RBI · SEBI · IRS
Standard
Finance Act 2026

Every formula and editorial guide on eCalcy is reviewed by the eCalcy Editorial & Research Board and cross-referenced against RBI circulars, SEBI regulations, and the Income Tax Department guidelines. eCalcy is NOT a SEBI-registered investment advisor — all tools are educational planning aids only.

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