NPV function

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NPV function

Format


NPV(payment;interestRate)

Parameters

payment - a repeating field containing unequal payment amounts, or an expression that returns a reference to one.

interestRate - interest rate.

Data type returned

number

Description

Returns the net present value of a series of unequal payments made at regular intervals, assuming a fixed interestRate per interval. For example, suppose someone borrows money from you and pays you back in unequal amounts over a period of several years. You can calculate the result using the NPV function.

Examples

NPV(Loan;.05) returns 156.91277445..., when the repeating field, Loan, contains -2000 (the initial payment), 600, 300, 500, 700, and 400. The result (156.91277445...) is the actual profit in today's dollars that will be realized from this transaction.

NPV(Amounts;.10) returns 16758.35604870..., when the repeating field, Amounts, contains -5000 (the initial investment), 10,000, 0, 10,000, and 10,000.

If you want each return value to return 2 decimal places, surround the current formulas with the correct Round function: Round(Current Formula;2).

Related topics

Functions reference (category list)

Functions reference (alphabetical list)

About formulas

About functions

Defining calculation fields

Using operators in formulas

Contents > Functions reference (alphabetical list) > Financial functions > NPV function