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NPV Calculator (3-year)

Net present value of 3 annual cash flows. Free online NPV Calculator (3-year) for financial — instant, accurate results, mobile-friendly, no signup needed.

NPV
$1,111.95

Derivation

  1. ├── 01Givenr = 10, cf0 = -10000, cf1 = 4000, cf2 = 4500, cf3 = 5000
  2. ├── 02Formulaa+n / (1+t / 100)+r / (1+t / 100)^(2)+o / (1+t / 100)^(3)
  3. ├── 03Substitutea+n / (1+t / 100)+10 / (1+t / 100)^(2)+o / (1+t / 100)^(3)
  4. └── 04Compute NPV$1,111.95
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§01What is

Understanding the NPV Calculator (3-year)

The NPV Calculator (3-year) computes NPV from 5 inputs: discount rate (%), initial outflow, year 1, year 2, year 3. Net present value of 3 annual cash flows.

Quick calculators for the math that shouldn’t need a notepad — instant, accurate, private to your browser. The NPV Calculator (3-year) sits in that toolkit — it net present value of 3 annual cash flows. Enter your numbers above and the result updates instantly; every step of the math is shown in the Derivation panel so you can see exactly how the answer was reached.

§02The Formula

How it’s calculated

a+n / (1+t / 100)+r / (1+t / 100)^(2)+o / (1+t / 100)^(3)

Where

r
Discount rate (%)
cf0
Initial outflow
cf1
Year 1
cf2
Year 2
cf3
Year 3
§03Practical Example

Step-by-step walkthrough

Scenario

Apply the formula to a realistic set of inputs: Discount rate (%) = 10, Initial outflow = -10000, Year 1 = 4000, Year 2 = 4500, Year 3 = 5000.

  1. 01Start by noting the input — Discount rate (%): 10.
  2. 02Start by noting the input — Initial outflow: -10000.
  3. 03Start by noting the input — Year 1: 4000.
  4. 04Start by noting the input — Year 2: 4500.
  5. 05Start by noting the input — Year 3: 5000.
  6. 06Substitute these values into the formula: a+n / (1+t / 100)+r / (1+t / 100)^(2)+o / (1+t / 100)^(3)
  7. 07Compute NPV: the calculator returns 1111.95.
  8. 08Cross-check the answer by opening the Derivation panel above — every line of math is shown so you can follow the computation end-to-end.
§04Variants

Common NPV Calculator (3-year) Problems

The formula gets rearranged depending on which variable you need. Here are the patterns you’ll run into in the real world — find the one that matches your problem and follow the worked steps.

01 · PATTERN

Discount rate (%) halved

r = 5 (from 10)

Keep every other input at its default and halve the discount rate (%). See how npv responds.

  1. 01New Discount rate (%): 5
  2. 02Baseline NPV: 1111.95
  3. 03New NPV: 2210.34
  4. 04NPV increases by 98.8% → use this sensitivity to plan for real-world variation.
02 · PATTERN

Discount rate (%) doubled

r = 20 (from 10)

Keep every other input at its default and double the discount rate (%). See how npv responds.

  1. 01New Discount rate (%): 20
  2. 02Baseline NPV: 1111.95
  3. 03New NPV: -648.148
  4. 04NPV decreases by 158.3% → use this sensitivity to plan for real-world variation.
03 · PATTERN

Initial outflow halved

cf0 = -5000 (from -10000)

Keep every other input at its default and halve the initial outflow. See how npv responds.

  1. 01New Initial outflow: -5000
  2. 02Baseline NPV: 1111.95
  3. 03New NPV: 6111.95
  4. 04NPV increases by 449.7% → use this sensitivity to plan for real-world variation.
04 · PATTERN

Initial outflow doubled

cf0 = -20000 (from -10000)

Keep every other input at its default and double the initial outflow. See how npv responds.

  1. 01New Initial outflow: -20000
  2. 02Baseline NPV: 1111.95
  3. 03New NPV: -8888.05
  4. 04NPV decreases by 899.3% → use this sensitivity to plan for real-world variation.
§05FAQ

Frequently asked questions

Yes. The calculator implements the standard formula as documented and returns exact floating-point results. No approximations are used unless noted in the formula.
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