Adjusted Present Value (APV) Calculator
Calculate your adjusted present value (APV) to understand the true value of investments by accounting for financing effects, tax benefits, and other factors. This calculator provides a more accurate picture of investment worth for decision-making.
Unlevered Present Value
base case NPV
Interest Tax Shield PV
tax benefit value
Total Financing Costs
financing expenses
Adjusted Present Value (APV)
true investment value
Net Present Value (NPV)
unlevered value
Financing Effect
tax shield - costs
APV Improvement
over NPV
Improvement Percentage
relative to NPV
IRR Approximation
annual return
Payback Period
years to recover
Profitability Index
value per dollar invested
Annual Interest
debt interest expense
Annual Tax Shield
tax benefit per year
Flotation Costs
issuance expenses
Bankruptcy Costs
financial distress costs
Other Financing Effects
additional costs
Results calculated based on your inputs
About Adjusted Present Value (APV) Calculator
The Adjusted Present Value (APV) Calculator is a sophisticated financial tool that determines the true value of an investment or project by adjusting the present value for financing effects, tax benefits, and other relevant factors. Unlike traditional discounted cash flow (DCF) analysis, APV separates the value of the project from the value of financing, providing a more accurate assessment of investment worth.
Understanding your APV is crucial for accurate investment analysis, project valuation, and capital budgeting decisions. This calculation accounts for factors such as interest tax shields, financing costs, bankruptcy costs, and other financing-related effects that can significantly impact the true value of an investment. By providing a more comprehensive view of investment value, APV helps investors and managers make informed decisions about capital allocation and project selection.
This calculator is essential for investment professionals, corporate finance managers, project analysts, and anyone involved in capital budgeting who needs to determine the true value of investments while accounting for financing effects. By analyzing both unlevered and levered values, you can develop a comprehensive understanding of investment worth and make better decisions about capital allocation and financing strategies.