Disaster Risk NPV Calculator

Risks feel abstract until you price them. Give a disaster a yearly chance and a loss amount — a flooded warehouse, a burnt shop, a week-long outage — and this tool turns it into an expected yearly loss and its net present value, so you can judge whether insurance or mitigation spending is worth it.

What a flood, fire or outage really costs you over time — in today’s money.

Chance of the event each year (%)

Loss if it happens (PKR)

Planning horizon (years)

Discount rate (%)

Optional: mitigation cost per year (PKR)

Optional: mitigation cuts the chance by (%)

NPV of expected losses (no mitigation)

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Expected loss per year

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NPV with mitigation (risk + cost)

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NPV saved by mitigating

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Enter valid values in every field to see your result. Check for blanks, text in number fields, or a combination that cannot be calculated (shown in the notes under How it works).

How it works

Expected annual loss = probability × impact. That yearly figure is then discounted like an annuity over your planning horizon: NPV = expected loss × (1 − (1+r)^-n) ÷ r. The mitigation comparison adds your yearly mitigation cost to the reduced expected loss, so you can see the true all-in cost of protecting yourself versus doing nothing.

More tools: All calculators · Capex Impact Calculator · Business Valuation

Estimates only — not financial, tax, or professional advice. Figures depend entirely on the values you enter; confirm important decisions with a qualified professional.