Excel NPV Function

This Excel Tutorial demonstrates how to use the Excel NPV Function in Excel to calculate the net present value of a series of cash flows, with formula examples.

NPV Function Description:

The NPV Function Calculates the net present value.

Formula Examples:

npv function examples

ExampleFormulaResult
1=NPV(B5:B10,D5)1387.2014

Syntax and Arguments:

The Syntax for the NPV Formula is:

Function Arguments ( Inputs ):

rate – The interest rate per period. Example: use 8%/2 = 4% for semi-annual payments at 8% APR.

value1 – The series of payments, all occuring at equal time increments.

Additional Notes

Use the NPV Function to calculate the Net Present Value of an investment.

Periodic cash flows are required. Cash flows most occur on a consistent basis each period.

NPV Examples in VBA

You can also use the NPV function in VBA. Type:
application.worksheetfunction.npv(rate,value1,value2)
For the function arguments (rate, etc.), you can either enter them directly into the function, or define variables to use instead.

Return to the List of all Functions in Excel

How to use the NPV Function in Excel:

To use the AND Excel Worksheet Function, type the following into a cell:
=AND(
After entering it in the cell, notice how the AND formula inputs appear below the cell:
npv formula syntax
You will need to enter these inputs into the function. The function inputs are covered in more detail in the next section. However, if you ever need more help with the function, after typing “=NPV(” into a cell, without leaving the cell, use the shortcut CTRL + A (A for Arguments) to open the “Insert Function Dialog Box” for detailed instructions:
how to use the npv function in excel

For more information about the NPV Formula visit the
Microsoft Website.

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