How to Calculate NPV, IRR & ROI in Excel || Net Present Value…



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30 thoughts on “How to Calculate NPV, IRR & ROI in Excel || Net Present Value…”

  1. Hi Matt. I have a question regarding ROI. Why do you take all outflows and not only the investment amount ($425)?

  2. Thank you very much for this Tutorial. You indicate that you get multiple IRRs if you have more than 1 year of negative cashflows. What happens if you have an initial investment in year 0 and then project a loss in year 1? E.g. Fish farm where your first year has no sales because you are growing the fish? How do you then compute the IRR(s)?

  3. Hi. suppose out of the investment of $495000, $ 200,000 is a loan taken from the bank and the person has to pay interest @ $ 20,000.00 per year. How the calculation of ROI will change? Kindly help.

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  6. Excellent job Matt, also using excel skills made it very interesting to improve the knowledge of excel itself.

  7. Awesome Vid, What if in year 0, you have a cash inflow rather than cash outflow. Such as borrowing money from the bank at the start, which equates to cash inflow.

  8. What if your initial investment is a loan? I have included loan repayments (principal+interest) in the cash outflow. However, the NPV value drastically changes from 15% to around 6%. Is this right or am I making a mistake somewhere? Thank you

  9. Matt, thanks for this. Very helpful. I do have a question around ROI. I created a similar spreadsheet as urs. My year 0 investment is 3MM and net annual cashflow for years 1 thru 5 is $9MM. My ROI is only coming out to be 160% when I use your method. Isn't the ROI the return off the $3MM initial investment only? If so, even for the 1st year, shouldn't it be around 300%? (3MM returning 9MM net)

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