Excel Formulas to Calculate Net Present Value (NPV) ~ Simple Guide!!
Tags: excelformula, excelformulas
Published: 2021-07-01 05:43:19

---
title: Excel Formulas to Calculate Net Present Value (NPV) ~ Simple Guide!!
published: true
date: 2021-06-24 09:28:07 UTC
tags: ExcelFormula,Excelformulas
canonical_url: https://geekexcel.com/excel-formulas-to-calculate-net-present-value-npv/
---

 **Net present value**  or net present worth is a core element of financial analysis that indicates whether a project is going to be profitable or not.  Here we will show the formulas to **calculate the Net Present Value (NPV) in Excel**. Let’s dive into this article!! Get an official version of ** MS Excel**  from the following link: [https://www.microsoft.com/en-in/microsoft-365/excel](https://www.microsoft.com/en-in/microsoft-365/excel)

[![Calculate Net Present Value](https://geekexcel.com/wp-content/uploads/2021/06/Calculate-Net-Present-Value.png)](https://geekexcel.com/excel-formulas-to-calculate-net-present-value-npv/calculate-net-present-value/#main)<figcaption id="caption-attachment-47913">Calculate Net Present Value</figcaption>

## Generic Formula:

- If you want to find out the NPV,  you can use the below formula.

**=NPV(rate,cashflows)-initialcost**

## Syntax Explanations:

- **NPV** – In Excel, the **FV function** will help to return the future value of an investment.
- **Rate** – It represents the interest rate.
- **Cashflow** – It specifies the cash amounts per year.
- **Initial Cost** – It represents the initial amount.
- **Comma symbol (,)** – It is a separator that helps to separate a list of values.
- **Parenthesis ()** – The main purpose of this symbol is to group the elements.

## Practical Example:

Let’s consider the below example image.

- First, we will enter the input values in **Column B** and **Column C**.
- Here we need to find out the NPV based on the interest rate given in **Cell F2**.

![Input Ranges](https://geekexcel.com/wp-content/uploads/2021/06/Input-Ranges-68.png)<figcaption id="caption-attachment-47911">Input Ranges</figcaption>

- Select any cell and apply the above-given formula.

![Enter the formula](https://geekexcel.com/wp-content/uploads/2021/06/Enter-the-formula-82.png)<figcaption id="caption-attachment-47910">Enter the formula</figcaption>

- Finally, press the ** ENTER**  key, you can get the result as shown below.

![Result](https://geekexcel.com/wp-content/uploads/2021/06/Result-69.png)<figcaption id="caption-attachment-47912">Result</figcaption>

## Bottom-Line:

In this chapter, we have described the formulas to **calculate the net present value (NPV) in Excel**. Mention your **queries** in the **comment** box below.

Thank you so much for visiting  **[Geek Excel](https://geekexcel.com/)!! **If you want to learn more helpful formulas, check out [**Excel Formulas**](https://geekexcel.com/excel-formula/) **!! **

### Read Also:

- **[Excel Formulas to Calculate the Present Value of Annuity ~ Useful Tricks!!](https://geekexcel.com/excel-formulas-to-calculate-the-present-value-of-annuity/)**
- **[Formulas for Finding Largest Value Smaller than a Specified Number!!](https://geekexcel.com/formulas-for-finding-largest-value-smaller-than-a-specified-number/)**
- **[How to find Vlookup and Return the Matching Values from Multiple Worksheets?](https://geekexcel.com/how-to-find-vlookup-and-return-the-matching-values-from-multiple-worksheets/)**
- **[Excel Formulas to Compare Future Values Vs Present Value ~ Easily!!](https://geekexcel.com/excel-formulas-to-compare-future-values-vs-present-value/)**