This article describes the formula syntax and usage of the NPV function in Microsoft Excel.


Calculates the net present value of an investment by using a discount rate and a series of future payments (negative values) and income (positive values).



The NPV function syntax has the following arguments:



Copy the example data in the following table, and paste it in cell A1 of a new Excel worksheet. For formulas to show results, select them, press F2, and then press Enter. If you need to, you can adjust the column widths to see all the data.

0.1Annual discount rate
-10000Initial cost of investment one year from today
3000Return from first year
4200Return from second year
6800Return from third year
=NPV(A2, A3, A4, A5, A6)Net present value of this investment$1,188.44

Example 2

0.08Annual discount rate. This might represent the rate of inflation or the interest rate of a competing investment.
-40000Initial cost of investment
8000Return from first year
9200Return from second year
10000Return from third year
12000Return from fourth year
14500Return from fifth year
=NPV(A2, A4:A8)+A3Net present value of this investment$1,922.06
=NPV(A2, A4:A8, -9000)+A3Net present value of this investment, with a loss in the sixth year of 9000($3,749.47)

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