Nicotinamide adenine dinucleotide phosphate (NADP+) is a coenzyme that functions as a universal electron carrier, accepting electrons and hydrogen atoms to form NADPH. NADPH is the reduced form of NADP+, which is used as a reducing agent in anabolic reactions, such as the Calvin cycle and lipid and nucleic acid syntheses. NADP+ is created in anabolic reactions, or reactions that build large molecules from small molecules. NADP+ differs from NAD+ by the presence of an additional phosphate group on the 2 position of the ribose ring that carries the adenine moiety. This extra phosphate is added by NAD+ kinase and removed by NADP+ phosphatase. NADP+ is used by all forms of cellular life.

In summary, NADP is a coenzyme that functions as a reducing agent in anabolic reactions, and NADPH is the reduced form of NADP+.