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Excel NPV Function


NPV Function

The NPV function is used to calculate the Net Present Value (NPV)

It is typed =NPV

=NPV(rate, value1, value2, ...)

rate: The Discount rate.

value: The cells where the cash flows are.


How to Use NPV Excel Function

To calculate and find out whether an investment is positive in the future, use NPV.


Step 1) Type the rate value

The rate is the required Discount Rate that you want to use.

We will use 10% in this example.

  1. Select cell (B9)
  2. Type 10%
  3. Hit enter

Ensure that you enter the value as percentage(%).


Step 2) Start the NPV function
  1. Select a cell (E9)
  2. Type =NPV
  3. Double click the NPV command

Copy Values
Follow along the tutorial by trying it yourself!

Copy the values in the example above and try it on your own!

Excel Skills for Business Specialization
Step 3) Add values to the function

Let us add the rate and the values from 1 to 10 to the function.

  1. Select cell (B9)
  2. Type , or ;
  3. Select the range (B2:K2)
  4. Hit enter

Note: The different parts of the function are separated by a symbol, like comma , or semicolon ;

The symbol depends on your Language Settings.


Did you calculate 377,87?

Congratulations! you have just calculated the NPV for ten years using a discount rate of 10%