Net Present Value

Overview

You send cashflows numbered by period and one per-period discount rate; we return the net present value in exact decimals, plus the discount factor and the discounted amount behind every period so the total can be checked line by line. Periods are ordinals, not dates: period 0 is undiscounted. We never look a rate up for you and never pick a day-count convention. Use finance.irr when you want the rate that makes this zero.

A discounted cashflow done in a spreadsheet hides its factors and rounds where the cell format happens to fall, so two people get two answers. You keep the rate and the periods; we do the arithmetic in exact decimals and hand back every factor we used.

When to use it

Scope

Non-goals

• Does not fetch or infer a discount rate, an inflation figure or a hurdle rate
• Does not convert dates to periods or choose a day-count convention
• Does not mix currencies in one series or convert between them
• Does not solve for the rate — that is finance.irr

Properties

Capabilities

Cost & billing

Flat rate per invocation

File handling

How we handle your data

Input schema

Output schema

API contract

curl -sS -X POST "$BASE/v1/execute" -H "Authorization: Bearer $KEY" -H 'Content-Type: application/json' -d '{"skillKey":"finance.npv","input":{"cashflows":[{"period":0,"amount":"-1000.00"},{"period":1,"amount":"500.00"},{"period":2,"amount":"500.00"},{"period":3,"amount":"500.00"}],"discountRate":"0.25","currency":"EUR"}}'

import { Squillify } from "@squillify/sdk";

const sq = new Squillify({ apiKey: process.env.SQUILLIFY_API_KEY });

const { output } = await sq.execute("finance.npv", {"currency":"EUR","discountRate":"0.25","cashflows":[{"period":0,"amount":"-1000.00"},{"period":1,"amount":"500.00"},{"period":2,"amount":"500.00"},{"period":3,"amount":"500.00"}]});

Errors

Other limits

Limitations

• Does not fetch or infer a discount rate, an inflation figure or a hurdle rate
• Does not convert dates to periods or choose a day-count convention
• Does not mix currencies in one series or convert between them
• Does not solve for the rate — that is finance.irr
• Irregular calendar dates you have not yet converted to periods
• Cashflows in several currencies
• Finding the break-even rate of a series

How to call

POST /v1/execute (requires authentication)

{
  "skillKey": "finance.npv",
  "input": {
    "currency": "EUR",
    "discountRate": "0.25",
    "cashflows": [
      {
        "period": 0,
        "amount": "-1000.00"
      },
      {
        "period": 1,
        "amount": "500.00"
      },
      {
        "period": 2,
        "amount": "500.00"
      },
      {
        "period": 3,
        "amount": "500.00"
      }
    ]
  }
}

Examples

{
  "currency": "EUR",
  "discountRate": "0.25",
  "cashflows": [
    {
      "period": 0,
      "amount": "-1000.00"
    },
    {
      "period": 1,
      "amount": "500.00"
    },
    {
      "period": 2,
      "amount": "500.00"
    },
    {
      "period": 3,
      "amount": "500.00"
    }
  ]
}

{
  "rounding": {
    "scale": 2,
    "mode": "HALF_UP"
  },
  "currency": "EUR",
  "discountFactors": [
    {
      "period": 0,
      "discountFactor": "1",
      "discountedAmount": "-1000"
    },
    {
      "period": 1,
      "discountFactor": "0.8",
      "discountedAmount": "400"
    },
    {
      "period": 2,
      "discountFactor": "0.64",
      "discountedAmount": "320"
    },
    {
      "period": 3,
      "discountFactor": "0.512",
      "discountedAmount": "256"
    }
  ],
  "periods": 4,
  "npv": "-24.00",
  "discountRate": "0.25"
}

{
  "cashflows": [
    {
      "period": 0,
      "amount": "-500.00"
    },
    {
      "period": 1,
      "amount": "200.00"
    },
    {
      "period": 2,
      "amount": "350.00"
    }
  ],
  "discountRate": "0"
}

{
  "npv": "50",
  "discountRate": "0",
  "periods": 3,
  "discountFactors": [
    {
      "period": 0,
      "discountFactor": "1",
      "discountedAmount": "-500"
    },
    {
      "period": 1,
      "discountFactor": "1",
      "discountedAmount": "200"
    },
    {
      "period": 2,
      "discountFactor": "1",
      "discountedAmount": "350"
    }
  ]
}

Recommended use cases

• Compare two investment options at an agreed hurdle rate
• Value a lease or a payment plan in today's money
• Show a client the discount factor behind every period of a proposal

Avoid for

• Irregular calendar dates you have not yet converted to periods
• Cashflows in several currencies
• Finding the break-even rate of a series

Related skills

Composable with

Safety & privacy

• Runs without calling any external service.
• Your payloads are never stored permanently.
• Telemetry captures metadata only — never your payload contents.
• We never train models on your payloads.
• No human reviews your payloads.

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