In the following spreadsheet the Excel Pv function is used to calculate the present value of an annuity that pays 1000 per month for a period of 5 years. Essentially the PMT function allows you to perform time-value of money calculations. PV Function in Excel.
Use the PV function to get the present value as per predicted future value.
You can use the PV function to get the value in todays dollars of a series of future payments assuming periodic constant payments and a constant interest rate. The present value Excel PV function has 3 required arguments. Steps to Calculate NPV in Excel There are two methods to calculate the NPV in the Excel sheet. Use the PV function to get the present value as per predicted future value.