ROI Calculator (NPV)
Advanced ROI (NPV): Net Present Value and Discounted ROI calculation.. Free, no account needed – works offline.
Advanced ROI (NPV)
Business
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How the Advanced ROI (NPV) Works
This calculator computes Net Present Value (NPV) by discounting future cash flows at your chosen rate. It then subtracts the initial investment. A positive NPV means the project adds wealth; negative destroys value. The discounted ROI shows return after accounting for time value.
Investment $50,000, annual cash flow $15,000, 5 years, discount rate 8%. Total PV = $59,889, NPV = $9,889, Discounted ROI = 19.8%.
Common Mistakes
- Ignoring the discount rate:
- Overly optimistic cash flow projections:
- Not including working capital:
Frequently Asked Questions
What discount rate should I use?
Use your company WACC or required return; 8–10% is common for safe projects.
What is the difference between ROI and NPV?
ROI ignores time value; NPV discounts cash flows.
Can I calculate IRR?
No, this tool computes NPV and discounted ROI.