Net Present Value Calculator: Understanding Your Cash Flow with a PV Calculator

Fri, Jan 29, 2010

Tips and Tools

Net Present Value Calculator: Understanding Your Cash Flow with a PV Calculator

If you have multiple cash flows coming in from different projects, it may be useful to determine how profitable they are by using a net present value calculator or PV calculator.

Data for the NPV Calculator

To use a PV calculator, you will need to have data from all your cash flows that you would like to determine profitability. You will also need to know the interest rate.

Once you have this information, the net present value calculator will calculate the total with interest rate. You will then be able to see how much profit you are making from each cash flow.

Using a PV Calculator to Make a Financial Decision

If you receive a negative or low result from a cash flow, it either would be best to change what you are doing with that project to turn your earnings around or completed end it. Alternatively, if you find that you are making great profit on a cash flow, you know that you can continue the project as is.

Online, Excel and Templates for Net Present Value Calculators

Data Dynamica

Start calculating your present value with this calculator online. Simply input the date and interest rate to receive your results instantly.

Instructions for Excel Spreadsheet NPV Calculator

Create your own calculator in Excel with these steps.

Templates for NPV and IRR Calculators

If you would rather use an Excel spreadsheet but don’t want to deal with building it yourself, consider using one of these templates ready for your data.

Photo Courtesy of: Jayson Ignacio on flickr

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This post was written by:

Marcelina Hardy - who has written 131 posts on Buying, Selling and Maintaining a Home – Homespace.

Aside from her experience in buying and selling homes, Marcelina Hardy takes an active interest in news and trends within the real estate and mortgage industries. She has a MSEd in Counseling from Old Dominion University and a BA in Psychology from the University of Massachusetts at Amherst.

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