## How to calculate Net Present Value (NPV) in Excel

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 …