Introducing the Net Present Value Feature in Momentum

Explore the net present value feature in Momentum, designed to help you make informed financial decisions by comparing construction costs with operating savings over time.

19 May 2025 By Jason Block

In this guide, we'll learn how to use the net present value (NPV) feature in Momentum.

The net present value (NPV) shows you how much money your scope of work will save or make over its lifetime. It weighs the upfront costs against future savings, account for the fact that money today is worth more than money tomorrow.

The NPV calculation includes two main benefits:

Money saved on utility bills over time
Any fines you avoid by making the improvements

Then it subtracts the construction costs (after any rebates).

We'll explore how to view and edit variables such as time periods, discount rates, and escalation rates to tailor the NPV calculation to your specific project needs. Understanding these elements will enable you to make informed decisions about your investments.

Let's get started

While on any building's page, you'll see a metric for net present value in the Scope of Work Impacts section.

Go to Momentum and navigate to your desired building

Step #2: The NPV is shown in the Scope of Work Impacts section. Click Explain to see more detail. — The NPV is shown in the Scope of Work Impacts section. Click Explain to see more detail.

The calculation determines the net present value, based in the current year, for the scope of work.

When you're in a custom scope of work, you can edit the parameters and update the calculation to reflect your assumptions.

Time period: How long will you track benefits? Longer periods usually mean higher returns.
Start date: When will your new equipment begin operation? Later dates may increase construction costs.
Discount rate: This reflects how your organization values money now versus later. Think of it as the cost of tying up your money in this project instead of elsewhere.
Construction cost increases: How much construction costs might rise each year.
Utility cost increases: How much your utility bills might rise each year.

Step #4: Click on any value to edit and click Recalculate to update the NPV — Click on any value to edit and click Recalculate to update the NPV

Step #5: If you change a number and realize you want to undo that, you can click the Cancel button — If you change a number and realize you want to undo that, you can click the Cancel button

Step #6: If you're interested in returning to the default assumptions, click "Reset to Default." This will restore everything to the starting point. — If you're interested in returning to the default assumptions, click "Reset to Default." This will restore everything to the starting point.

Adjust these numbers to match your assumptions, and NPV will help you see the value of your investment.