How to Calculate NPV (Net Present Value) in Excel

In this video I will show you how to calculate NPV in Excel.
The NPV, or Net Present Value, is the present value, or actual value, of a future flow of funds. The present value of a future cash flow is the current worth of it. To know the current value, you must use a discount rate. The NPV includes not only the positive cash flows, or inflows, but also all expenditures, including the initial investment.
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How to Calculate NPV (Net Present Value) in Excel

[@bernicehudson3812]

Yes this video saved my life today. I took my time and followed the instructions and actually understand the formula so much better. AWESOME TUTORIAL.

[@Potencyfunction]

Sure you are creating value and sustanabilty.

[@BrandonCoursey]

Great example, but your discount rate is 9.5%. If you use 10%, the NPV is 45,782.68.

[@pigslefats]

Good spot.

[@chuckcarr9323]

I agree at 10% the NPV is $45,782.68

[@brandonbertelsen8253]

Thank you. I couldn't figure out why I was getting a different answer!

[@evesud2]

Thank you

[@scientificapproach6578]

Discount Rate is 9.5% for anyone who is getting a different answer.

[@lanceross1035]

That's pretty key. Good explanation other then misstating the discount rate. Thank you.

[@MalaikaKnight]

Very good explanation! Right to the point. Thank you!

[@StayTrue145]

It’s wrong. The answer is incorrect

[@MalaikaKnight]

@@StayTrue145 I wasnt doing the same problem he was but his explanation was helpful.

[@gradeNB]

Undefeated! Thank you sir ❤

[@heroesfishing4917]

Thank you, this is the 3rd video I've watched and you explained it right!

[@jenni1111100]

Thank you! I finally got thru my homework because of you.

[@nataschabanda1591]

Thank you for this simple explanation. I have aced my assignment 🎉

[@Momotivation0508]

My answer was NOT what this stated and I followed the formula EXACTLY. My answer was $45,782.68 . Why the difference?

[@LifewithTanefa]

Thanks for making this so easy 😃

[@RafaelCardenas-b2u]

Great an simple video. Thanks a lot!

[@angelacanizales9421]

Made this so easy bro thank you!

[@tourinojacks5844]

This is great! Got it.

[@piojosefina2568]

Probablemente el 10% estaba aproximado y era 9.5%//////probably discounted rate used for the video is 9.5%-.. but for excel aproximation, we see it as 10%

[@MrkoalaDoraemon]

A little bit of prep by the author would've saved me time. 975k subs though. Everyone has their off days I guess

[@laurasimms7031]

Thank you! I thought I was losing my mind!

[@AdamPNelson]

ERROR!!! screen shows 10% buT in reality the cell is actually 9.5% which excel rounded up and displayed 10%.

[@elangovanbalaraman3144]

I did the same calculation but NPV is different. Not sure what am I missing

[@rhaty1000]

put %

[@EdwardO-qu8bz]

thanks again for your help

[@miantor672]

Love you❤

[@kevinjiang2738]

thanks man i love you

[@flamezilla]

This worked thank you so much xoxo gossip girl

[@Gerrick]

This video really helped. Thank you.

[@specialh321]

OMG! Thank you sooo much for this easy and thorough explanation! ❣

[@pinksquid4157]

Where do you get the cash flows from?

[@nickschwambsmix8668]

What about the salvage value?

[@mohammadzaman7383]

Superb!

[@JasonNielsenCreations]

Your the best thank you. Business Finance Final. Yikes.

[@malcolmFelix-z8t]

Very good explanation, simple and straightforward. Thank you.

[@Potencyfunction]

Yes I understand the net present value calculation come from th epast but accoring to decision making theory how can a perosn take an outgoing point in the past, whitout taking in consideration the optimale condintions for the decisions reason, and how the comany can not be affected by the others factors, which have nothing to do with sustainbility goals and laws? How come past bullshiting at affect present sustaiblity of a company and what is the future for the coming bullshiting on sustainable goals targets and how affected is the parteners ship .

[@jennyrose4769]

what about the period it should multiply by it self

[@Potencyfunction]

Why do the period come ?

[@salma4372]

how to do it with different CF

[@Osdavidu778]

GReat simple explanation thanks

[@amyarmstrong8150]

you are awesome! life saver

[@abbaskhanyousafzai1]

my NPV value is not showing it only shows -

[@guillermopimentel1020]

What does it mean when I do all the steps and then all I get is ######## as the answer ?

[@sethgberkman]

it usually means the cell (box) that your answer is in isn't wide enough to display the result. Just make it a bit bigger.

[@sonasingh131]

hey! thanks so much ..very clearly explained

[@taangmanton]

Thanks

[@EnglishalmostBanglayEAB]

My amount was 45k+
Am i the only one facing this difficulty??

[@siphiwendwandwe7224]

YOU ARE NOT THE ONLY ONE, MINE WAS THAT ASWELL.

[@farqrock4407]

You have earned a subscriber . doing a great job . best wishes

[@rony6860]

So helpful 👍

[@sujeewarajapakse9455]

very clear, thanks

[@liabosh]

he wrote 9.5% guys and not 10%

[@Julz7777]

thanks😀

[@hiramuskan364]

I get 30360.95..

[@aperson2890]

i get 45782.68 something wrong

[@indianlad23]

I too get the same

[@indianlad23]

How to get the correct value?

[@markjaysonpenafiel1350]

45782.68 is the correct answer, I've tried to manually compute it. Something must have gone wrong with his calculations but I don't see any

[@MrDastan07]

Me too

[@jingyao8109]

Thank god I thought my cals were wrong

[@sir_henbrown]

Thanks keep it up 👍🏿

[@saurabh-d3f]

How to do it when rate is diferent in all the years

[@ayushkalal8373]

hey please speak a bit loud

[@ronx761]

This was incorrect

[@bakshishsingh9024]

Thanks mate..

[@nihalfouad894]

You should not discount the initial.investment at year 0!!

[@profbfc]

he did not discount it, he just added it back without discounting which is correct

[@Rinpuia24]

It gives 4578268.4228187100%, wtf does this even mean