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XNPV

XNPV

  • Last updated on

Description

Use this function to return the net present value for a schedule of cash flows that isn't necessarily periodic.

To calculate the net present value for a periodic series of cash flows, use the NPV function.

 

Syntax

XNPV(rate, values, dates)

 

Inputs

This function has the following arguments:

Name Required Valid input
rate Yes The discount rate to apply to the cash flows.
values Yes A series of cash flows that corresponds to a schedule of payments in dates. The first payment is optional and corresponds to a cost or payment that occurs at the beginning of the investment. If the first value is a cost or payment, it must be a negative value. All succeeding payments are discounted based on a 365-day year. The series of values must contain at least one positive value and one negative value.
dates Yes A schedule of payment dates that corresponds to the cash flow payments. The first payment date indicates the beginning of the schedule of payments. All other dates must be later than this date, but they may occur in any order.

 

Example

Sample data

  A B
1 Values Dates
2 -$10,000 1/1/2008
3 $2,750 3/1/2008
4 $4,250 10/30/2008
5 $3,250 2/15/2009
6 $2,750 4/1/2009

Sample Formulas

Use case Formula Explanation and Result
Calculate the net present value of an investment for a specified rate using a date range in calls and values in cells. =XNPV(0.09, A2:A6, B2:B6)

This formula works in the following manner:

  • XNPV(: This is the function itself, calculating Net Present Value for non-periodic cash flows.
  • 0.09: The discount rate to apply to the cash flows (9%).
  • B2:B6: The range containing the series of cash flow values. The series must contain at least one positive and one negative value.
  • A2:A6: The range containing the schedule of payment dates corresponding to the cash flows. 

Result: approximately 2086.65.

 

Notes

  • Like Excel, the Workiva platform stores dates as sequential serial numbers so they can be used in calculations. By default, January 1, 1900 is serial number 1, and January 1, 2008 is serial number 39448 because it is 39,448 days after January 1, 1900.
  • Numbers in dates are truncated to integers.
  • If any argument is not numeric, XNPV returns the #VALUE! error value.
  • If any number in dates is not a valid date, XNPV returns the #VALUE! error value.
  • If any number in dates precedes the starting date, XNPV returns the #NUM! error value.
  • If values and dates contain a different number of values, XNPV returns the #NUM! error value.

  • XNPV is calculated as follows:

    XNPV Formula
    where:

    • di = the ith, or last, payment date.
    • d1 = the 0th payment date.
    • Pi = the ith, or last, payment.

 

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DescriptionUse this function to return the net present value for a schedule of cash flows that isn't necessarily peri...