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how to do npv calculation in excel. Establish a series of cash flows must be in consecutive cells. Unfortunately Excel does not define or calculate the NPV function correctly to calculate NPV correctly in Excel you should exclude the initial cash outflow Investment from your NPV formula and you should add that original investment amount at the end of NPV formula in order to find the actual NPV.
Set a discount rate in a cell. The NPV investment begins one period before the date of the value1 cash flow and ends with the last cash flow in the list. Formula for NPV function.
As you do this the input field for Function will get the same value as exactly shown in the picture below.
Formula for NPV function. Set a discount rate in a cell. Formula for NPV function. The Excel net present value formula.