How to use the XNPV function in Excel

In this article, we will learn about How to use the XNPV Function in Excel.

In simple words, to get the net present value of a series of cash flows at irregular intervals.

XNPV function returns the net present value for a schedule of cash flows that is not necessarily periodic
Syntax:

Rate : discount rate
Values : Cash flows
Dates : Dates that corresponds to cash flows
Let’s understand this function using it in an example.

Here we have a list of Cash flows with corresponding dates. Discount rate is 9%.

positive values represent cash received

Use the formula:

E2 : Discount rate
B2:B7 : Cash flows
A2:A7 : Dates that corresponds to cash flows

The function returns the net present value for the Cash flow data shown in the above snapshot.
Notes:

1. Dates should be valid date in Excel
2. Dates and Cash flows must be in order.
3. The function doesn’t count the initial cash flow.
4. To calculate the net present value for a series of cash flows that is periodic, use the NPV function.

Hope you understood How to use the XNPV function in Excel. Explore more articles on Excel financial functions here. Please state your query or feedback in the comment box below.

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