# Documentation/Calc Functions/NPV

NPV

## Category:

Financial Analysis

## Summary:

NPV stands for Net Present Value. The function calculates the present value of an investment based on a series of periodic cash flows and a discount rate. To get the net present value, subtract the cost of the project (the initial cash flow at time zero) from the returned value.

## Syntax:

NPV(Rate; Number 1 [; Number 2 [; … [; Number 254]])

## Returns:

Returns the present value of an investment based on a series of periodic cash flows and a discount rate.

## Arguments:

Rate is a real number(expressed as a percentage or fraction) or a reference to the cell containing that number which is the discount rate for a period.

Number 1, Number 2, … ,Number 254 are real numbers, references to cells or to cell ranges of numbers.

• If Rate is -100% or -1 then the function returns a numeric (#NUM!) error.

• The formula for NPV is:
• If the payments take place at irregular intervals, use the XNPV function.

## Examples:

Formula Description Returns
=NPV(8.75%;10;20;30) The function calculates the net present value of periodic payments of 10, 20, and 30 currency units with a discount rate of 8.75%. At time zero the costs were paid as -40 currency units. The net present value is the returned value minus the initial costs of 40 currency units, therefore 9.43 currency units. ₹49.43
=NPV(0.0875;A1:A3) where A1:A3 contains 10,20,30 The function calculates the net present value of periodic payments of 10, 20, and 30 currency units with a discount rate of 8.75%. At time zero the costs were paid as -40 currency units. The net present value is the returned value minus the initial costs of 40 currency units, therefore 9.43 currency units. ₹49.43
=NPV(8.75%;10;-20;30) The function calculates the net present value of periodic payments of 10, -20, and 30 currency units with a discount rate of 8.75%. At time zero the costs were paid as -40 currency units. The net present value is the returned value minus the initial costs of 40 currency units, therefore -24.39 currency units. 15.61

NPV