Work out feasibility study return instantly with clear inputs, formula shown and shareable results.
A feasibility test compares what a project returns with what it consumes, adjusted for time. Discounting projected revenue back to today at the required rate and subtracting the investment gives net present value: positive means the project beats the hurdle rate, negative means it does not, regardless of how large the nominal profit looks.
Net present value
NPV = revenue / (1 + discount rate)^years - investment
Annualised return
(revenue / investment)^(1/years) - 1
NPV = revenue / (1 + discount rate)^years - investment. A feasibility test compares what a project returns with what it consumes, adjusted for time.
Because the profit arrives too late. Fifteen million on forty million over three years is a nominal 37 percent, but only about eleven percent a year, which fails a twelve percent hurdle.
This calculator takes 4 inputs: Total investment, Projected revenue, Project duration, Discount rate. The pre-filled defaults are a realistic worked example — replace them with your own site or project figures.