4 Ways to Calculate NPV - wikiHow (2024)

About This Article

4 Ways to Calculate NPV - wikiHow (1)

Co-authored by:

Author, Speaker, & CEO of Mindful Money

This article was co-authored by Jonathan DeYoe, CPWA®, AIF® and by wikiHow staff writer, Megaera Lorenz, PhD. Jonathan DeYoe is a Financial Advisor and the CEO of Mindful Money, a comprehensive financial planning and retirement income planning service based in Berkeley, California. With over 25 years of financial advising experience, Jonathan is a speaker and the best-selling author of "Mindful Money: Simple Practices for Reaching Your Financial Goals and Increasing Your Happiness Dividend." Jonathan holds a BA in Philosophy and Religious Studies from Montana State University-Bozeman. He studied Financial Analysis at the CFA Institute and earned his Certified Private Wealth Advisor (CPWA®) designation from The Investments & Wealth Institute. He also earned his Accredited Investment Fiduciary (AIF®) credential from Fi360. Jonathan has been featured in the New York Times, the Wall Street Journal, Money Tips, Mindful Magazine, and Business Insider among others. This article has been viewed 851,585 times.

Co-authors: 18

Updated: September 14, 2022

Views:851,585

Article SummaryX

To calculate NPV, write down the amount of your investment, the time period you want to analyze, the estimated cash flow for that time period, and the appropriate discount rate. Discount your cash inflows, them add them all together and subtract your initial investment. If the answer is a positive number, this indicates a good investment. If the answer is a negative number, the investment isn't profitable. For tips on how to use the NPV equation, read on!

Did this summary help you?

  • Print
  • Send fan mail to authors

Thanks to all authors for creating a page that has been read 851,585 times.

Did this article help you?

4 Ways to Calculate NPV - wikiHow (2024)
Top Articles
Latest Posts
Article information

Author: Delena Feil

Last Updated:

Views: 5964

Rating: 4.4 / 5 (45 voted)

Reviews: 92% of readers found this page helpful

Author information

Name: Delena Feil

Birthday: 1998-08-29

Address: 747 Lubowitz Run, Sidmouth, HI 90646-5543

Phone: +99513241752844

Job: Design Supervisor

Hobby: Digital arts, Lacemaking, Air sports, Running, Scouting, Shooting, Puzzles

Introduction: My name is Delena Feil, I am a clean, splendid, calm, fancy, jolly, bright, faithful person who loves writing and wants to share my knowledge and understanding with you.