Written and reviewed by FormulaCraft Team. Each formula on this page is run through our verification engine before publishing.
Last reviewed:
NPV
NPV discounts each cash flow in a supplied range back to the present at a constant rate, summing them to produce the net present value. A positive NPV indicates the investment adds value. Note that NPV assumes cash flows occur at the end of each period; subtract any initial investment made at period 0 separately.
Excel
=NPV(0.1,B2:B5)Google Sheets
=NPV(0.1,B2:B5)✓
Verified example
Computed by a real spreadsheet engine on the sample data below.
| Year | CashFlow |
| 1 | 3000 |
| 2 | 4200 |
| 3 | 5800 |
| 4 | 6100 |
=NPV(0.1,B2:B5)→14722.3550303941
Try it with your data
Edit the grid or formula, then run it through a real spreadsheet engine — no signup.
Sample data — click any cell to edit
Runs server-side · free · no signup
How it works
- 1List your expected future cash flows for periods 1 onward in a contiguous range (e.g. B2:B5); do NOT include the initial outlay.
- 2Type =NPV(discount_rate, cashflow_range) — e.g. =NPV(0.1, B2:B5).
- 3Subtract the initial investment (entered as a negative) to get the true NPV: =NPV(0.1,B2:B5)+B1.
Need a version for your data?
Try: “Calculate the net present value of a project with cash flows over the next 4 years at a 10% discount rate”