Knowing how to calculate net present value can be useful when choosing investments. In a nutshell, an investment's NPV can help you to analyze its potential for profit.

Net present value (NPV) is used to estimate the profitability of projects or investments. You can calculate NPV in two ways using Microsoft Excel.

Net Present Value Formula There are two formulas you might use to calculate net present value. The one that you choose can depend on the number of cash flows the investment has.

Net present value and the profitability index are helpful tools that allow investors and companies make decisions about where to allocate their money for the best return.

Net present value and the profitability index are helpful tools that allow investors and companies make decisions about where to allocate their money.

NPV Calculator- Now Easily calculate the Net Present Value of your investments. Get accurate results in simple steps with IIFL Capital's online tool.

The interest rate can also be a discount rate, such as the current rate of inflation; in this case, the annuity formula discounts a series of future payments to calculate their present value.

Learn what present value (PV) and future value (FV) are and how to calculate present value in Excel given the future value, interest rate, and period.

What's the NPV? NPV stands for net present value, and it is an accounting calculation that every lender makes about each loan that is reviewed for a possible loan modification.