Source: https://awesomecalcs.com/npv-calculator/10-percent-uneven-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 10%: Uneven Cash Flows Over 5 Years

> A 5-year project with irregular year-to-year cash flows, showing NPV handles uneven inflows just as easily as steady ones.

Interactive calculator: https://awesomecalcs.com/npv-calculator/10-percent-uneven-cashflows

Keywords: NPV calculator uneven cash flows, NPV 5 year project

## Scenario inputs

```json
{
  "inputs": {
    "cashFlows": [
      {
        "period": 0,
        "amount": -200000
      },
      {
        "period": 1,
        "amount": 40000
      },
      {
        "period": 2,
        "amount": 90000
      },
      {
        "period": 3,
        "amount": 30000
      },
      {
        "period": 4,
        "amount": 110000
      }
    ],
    "discountRate": 10
  }
}
```

## 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

### Does NPV work if cash flows vary a lot year to year?

Yes, NPV simply discounts and sums whatever cash flow you enter for each period, so it handles uneven, lumpy cash flows exactly the same way it handles a steady stream, without needing any special adjustment.