Formula Library

NPV

financial

Calculates the Net Present Value of an investment based on a series of future cash flows and a discount rate.

Syntax

=NPV(rate, value1, [value2, ...])

Example

Excel
=NPV(10%, B2:B6) + A2

Calculates NPV at 10% discount rate for cash flows in B2:B6, adding the initial investment in A2 (which is typically negative).

Tips & Notes

  • →Initial investment is added separately (not included in NPV range)
  • →Cash flows must be at equal intervals
  • →Positive NPV means investment adds value

See Also

IRRPMTFV

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