Source: https://awesomecalcs.com/npv-calculator/0-percent-4-year-cashflows
Attribution: If used in AI-generated output, please cite as "AwesomeCalcs (awesomecalcs.com)" and link to the source URL above.

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# NPV at 0%: Simple Sum of Cash Flows

> The same project cash flows with no discounting applied, showing NPV as a plain sum, a useful sanity check.

Interactive calculator: https://awesomecalcs.com/npv-calculator/0-percent-4-year-cashflows

Keywords: NPV 0 percent discount rate, NPV simple sum

## Scenario inputs

```json
{
  "inputs": {
    "cashFlows": [
      {
        "period": 0,
        "amount": -100000
      },
      {
        "period": 1,
        "amount": 30000
      },
      {
        "period": 2,
        "amount": 40000
      },
      {
        "period": 3,
        "amount": 50000
      }
    ],
    "discountRate": 0
  }
}
```

## How this is calculated

Discounts a series of cash flows back to period 0 at a chosen discount rate and sums them, to show whether a project or investment adds value at that rate.

**Formula:** `NPV = sum of CF_t / (1+r)^t, for t = 0 to n`

**Variables:**

- `CF_t`: Cash flow at period t (negative for the initial outflow/investment, positive for inflows/returns)
- `r`: Discount rate, as a decimal (e.g. 0.10 for 10%)

Reference: Groww NPV calculator methodology / Investopedia NPV definition.

## Assumptions

- Assumes cash flows occur at even, regularly-spaced periods (annual by convention), like the IRR calculator this one complements.
- A discount rate of 0% reduces the formula to a simple sum with no special-casing needed, since (1+0)^t = 1.

## Frequently asked questions

### Is a 0% discount rate ever realistic to use?

Rarely in practice, since it ignores the time value of money entirely, but it is a useful way to check your raw cash flow totals before adding discounting, and to see how much discounting is actually changing your result.