Skip to content
Free Excel Tutorials
  • Home
  • Excel For Beginners
  • Excel Intermediate
  • Advanced Excel For Experts

Data Analysis

  • Move chart to a separate worksheet in Excel
  • Use Data Form to input, edit and delete records in Excel
  • Excel Pie Chart
  • Randomize/ Shuffle List in Excel
  • Subtotal function in Excel

References

  • How to use Excel FORMULATEXT function
  • How to use Excel LOOKUP Function
  • How to get relative column numbers in a range in Excel
  • Convert text string to valid reference in Excel using Indirect function
  • How to get last column number in range in Excel

Data Validations

  • Excel Data validation allow weekday only
  • Excel Data validation date in specific year
  • Excel Data validation only dates between
  • Excel Data validation must contain specific text
  • Excel Data validation must not contain

How to calculate Net Present Value (NPV) in Excel

by

NPV formula for net present value

To calculate Net Present Value (NPV) you can use the NPV function.

Formula

=NPV(rate,cashflows)-initialcost

Explanation

In the example shown, the formula in F6 is:

=NPV(F4,C6:C10)+C5

How this formula works

Net Present Value (NPV) is the present value of expected future cash flows minus the initial cost of investment. The NPV function in Excel only calculates the present value of uneven cashflows, so the initial cost must be handled explicitly.

One way to calculate Net Present Value in Excel is to use NPV to get the present value of all expected cash flows, then subtract the initial investment. This is the approach taken in the example shown, where the formula in F6 is:

=NPV(F4,C6:C10)+C5

The NPV function returns 50962.91. The initial investment (-50,000, recorded as a negative value because it is an outflow) is then added, and the final result is 962.91.

Post navigation

Previous Post:

How to count line breaks in cell in Excel worksheet

Next Post:

How to count total words in a cell in Excel

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Learn Basic Excel

Ribbon
Workbook
Worksheets
Format Cells
Find & Select
Sort & Filter
Templates
Print
Share
Protect
Keyboard Shortcuts

Categories

  • Charts
  • Data Analysis
  • Data Validation
  • Excel Functions
    • Cube Functions
    • Database Functions
    • Date and Time Functions
    • Engineering Functions
    • Financial Functions
    • Information Functions
    • Logical Functions
    • Lookup and Reference Functions
    • Math and Trig Functions
    • Statistical Functions
    • Text Functions
    • Web Functions
  • Excel VBA
  • Excel Video Tutorials
  • Formatting
  • Grouping
  • Others

Logical Functions

  • How to use Excel FALSE Function
  • OR function: Description, Usage, Syntax, Examples and Explanation
  • Excel If, Nested If, And/Or Criteria Examples
  • IFERROR function: Description, Usage, Syntax, Examples and Explanation
  • How to use Excel NOT Function

Date Time

  • Convert Excel time to decimal minutes
  • How to get same date next year or previous year in Excel
  • Convert time to time zone in Excel
  • How to calculate Next working/business day in Excel
  • Convert Excel time to Unix time in Excel

Grouping

  • Group arbitrary text values in Excel
  • Map text to numbers in Excel
  • Calculate conditional mode with criteria in Excel
  • Group numbers at uneven intervals in Excel
  • Group times into 3 hour buckets in Excel

General

  • How to choose page/paper size in Excel before Printing
  • How to create dynamic worksheet reference in Excel
  • How to calculate decrease by percentage in Excel
  • Find Most Frequently Occurring Word in Excel Worksheet
  • Subtotal by color in Excel
© 2023 xlsoffice . All Right Reserved. | Teal Smiles | Abbreviations And Their Meaning