NPV Function in Google Sheets

Calculate the net present value of an investment based on a series of periodic cash flows using the NPV function.

NPV Function

The NPV function in Google Sheets calculates the net present value of an investment based on a series of periodic cash flows and a discount rate.

Syntax

NPV(discount, cashflow1, [cashflow2, ...])
  • discount: The discount rate over one period. This is a required parameter.
  • cashflow1, cashflow2, ...: Cash flow amounts for each period. The first cash flow amount is required, additional cash flows are optional.

Examples

  1. Basic NPV Calculation

Calculate the NPV for a series of cash flows with a 10% discount rate:

=NPV(10%, -1000, 200, 300, 400, 500)

This will output approximately $145.07.

Notes

  • NPV is used in capital budgeting to analyze the profitability of an investment or project.
  • IRR: Calculate the internal rate of return for a series of cash flows.
  • MIRR: Calculate the modified internal rate of return considering different rates for borrowing and reinvestment.