Excel NPV Function

This post will guide you how to use Excel NPV function with syntax and examples in Microsoft excel.

Description

The Excel NPV function returns the net present value of an investment by using a discount rate and a series of future cash flows (future payments and income).

The NPV function is a build-in function in Microsoft Excel and it is categorized as a Financial Function.

The NPV function is available in Excel 2016, Excel 2013, Excel 2010, Excel 2007, Excel 2011 for Mac.

Syntax

The syntax of the NPV function is as below:

= NPV (rate, Value1,[value2],…)

Where the NPV function arguments are:

  • Rate -This is a required argument. The discount rate over one period.
  • Value1,[value2],… – the value1 argument is required, the subsequent values are optional. All values should be numeric values, and representing a series of future payments and income, the future payments should provide the negative values, and the income should provide the positive values.

Note:

  • The NPV investment begins one period before the date of the value1 cash flow and ends with the last cash flow in the list. The NPV calculation is based on future cash flows. If your first cash flow occurs at the beginning of the first period, the first value must be added to the NPV result, not included in the values arguments. For more information, see the examples below.
  • NPV is also related to the IRR function (internal rate of return). IRR is the rate for which NPV equals zero: NPV(IRR(…), …) = 0.

Excel NPV Function Examples

The below examples will show you how to use Excel NPV Function to calculate the net present value of an investment using a discount rate and a series of future cash flows.

#1 to get the net present value of an investment, using the following formula:

=NPV(B1,B2,B3,B4) 

excel npv exampels1


Related Functions

  • Excel FV Function
    The Excel FV function used to calculate the future value of an investment based on a constant interest rate. The syntax of the FV function is as below:=FV(rate,nper,pmt,[pv],[type])…
  • Excel IPMT Function
    The Excel IPMT function used to calculate the interest payment for an investment based on a constant payment schedule and a constant interest rage.The syntax of the IPMT function is as below:= IPMT (rate, per, nper, pv, [fv], [type])…
  • Excel IRR Function
    The Excel IRR function returns the internal rate of return for a series of cash flows and the cash flows must be occurred at regular intervals (monthly or annually).The syntax of the IRR function is as below:=IRR(values, [guess])…
  • Excel ISPMT Function
    The Excel ISPMT function used to calculate the interest paid during a specific period of an investment.The syntax of the ISPMT function is as below:= ISPMT (rate, per, nper, pv)…
  • Excel MIRR Function
    The Excel MIRR function returns the modified internal rate of return for a series of cash flows and the cash flows must be occurred at regular intervals (monthly or annually). The syntax of the MIRR function is as below:=MIRR(values, finance_rate,reinvest_rate)…
    Excel NPER Function
    The Excel NPER function returns the number of periods for an investment or loan based on periodic payment amount and a constant interest rate.The syntax of the NPER function is as below:= NPER (rate, pmt, pv, [fv], [type])…
  • Excel PMT Function
    The Excel PMT function returns the payment amount for a loan or investment based on constant payments and a constant interest rate.The syntax of the PMT function is as below:= PMT(rate, nper, pv,[fv],[type])…
  • Excel PPMT Function
    The Excel PPMT function returns the payment amount on the principal for a given period for a loan or investment based on constant payments and a constant interest rate. The syntax of the PPMT function is as below:=PPMT(rate, per,nper, pv,[fv],[type])…
  • Excel RATE Function
    The Excel RATE function returns the interest rate per payment period of an annuity.The syntax of the RATE function is as below:=RATE(nper, pmt,pv,[fv],[type],[guess])…
  • Excel PV Function
    The Excel PV function returns the present value of a loan or investment based on constant payments and a constant interest rate. So you can use the PV function to get the present value based on a series of future payments.The syntax of the PV function is as below:= PV(rate,nper,pmt,[fv],[type])…
Related Posts

Excel DVAR Function
excel dvar examples1

This post will guide you how to use Excel DVAR function with syntax and examples in Microsoft excel. Description The Excel DVAR Function will get the variance of a population based on a sample of numbers in a column in ...

Excel DSUM Function
excel dsum examples1

This post will guide you how to use Excel DSUM function with syntax and examples in Microsoft excel. Description The Excel DSUM Function will add the numbers in a column or database that meets a given criteria. And so you ...

Excel DSTDEVP Function
excel dstdevp examples1

This post will guide you how to use Excel DSTDEVP function with syntax and examples in Microsoft excel. Description The Excel DSTDEVP returns the standard deviation of a population based on the entire population of numbers in a column or ...

Excel DSTDEV Function
excel dstdev examples1

This post will guide you how to use Excel DSTDEV function with syntax and examples in Microsoft excel. Description The Excel DSTDEV returns the standard deviation of a population based on a sample of numbers in a column or database ...

Excel DMIN Function
excel dmin function example1

This post will guide you how to use Excel DMIN function with syntax and examples in Microsoft excel. Description The Excel DMIN returns the minimum value from a database or a column of a list that matches the specified conditions. ...

Excel DPRODUCT Function
excel dproduct examples1

This post will guide you how to use Excel DPRODUCT function with syntax and examples in Microsoft excel. Description The Excel DPRODUCT returns the product of values from a set of records that match criteria that you specify. The DPRODUCT ...

Excel XIRR Function
excel xirr examples1

This post will guide you how to use Excel XIRR function with syntax and examples in Microsoft excel. Description The Excel XIRR function returns the internal rate of return for a series of cash flows that is not necessarily periodic. ...

Excel VDB Function
excel vdb examples1

This post will guide you how to use Excel VDB function with syntax and examples in Microsoft excel. Description The Excel VDB function calculates the depreciation of an asset for a specified period based on the double declining balance method. ...

Excel SYD Function
excel syd examples1

This post will guide you how to use Excel SYD function with syntax and examples in Microsoft excel. Description The Excel SYD function calculates the sum-of-years’digits depreciation of an asset for a specified period. And it will return a numeric ...

Excel SLN Function
excel sln examples1

This post will guide you how to use Excel SLN function with syntax and examples in Microsoft excel. Description The Excel SLN function calculates the depreciation of an asset for one period based on the straight line depreciation. And it ...

Sidebar