LCM of two numbers

Profitability Index Calculator

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✖Net Present Value (NPV) is a method of determining the current value of all future cash flows generated by a project after accounting for the initial capital investment.ⓘ Net Present Value (NPV) [NPV]			+10% -10%
✖The Initial Investment is the amount required to start a business or a project.ⓘ Initial Investment [Initial Invt]			+10% -10%

✖Profitability Index (PI) is the ratio of payoff to the investment of a proposed project.ⓘ Profitability Index [PI]

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Profitability Index Solution

STEP 0: Pre-Calculation Summary

Formula Used

Profitability Index (PI) = (Net Present Value (NPV)+Initial Investment)/Initial Investment
PI = (NPV+Initial Invt)/Initial Invt
This formula uses 3 Variables

Variables Used

Profitability Index (PI) - Profitability Index (PI) is the ratio of payoff to the investment of a proposed project.
Net Present Value (NPV) - Net Present Value (NPV) is a method of determining the current value of all future cash flows generated by a project after accounting for the initial capital investment.
Initial Investment - The Initial Investment is the amount required to start a business or a project.

STEP 1: Convert Input(s) to Base Unit

Net Present Value (NPV): 700 --> No Conversion Required
Initial Investment: 2000 --> No Conversion Required

STEP 2: Evaluate Formula

Substituting Input Values in Formula

PI = (NPV+Initial Invt)/Initial Invt --> (700+2000)/2000

Evaluating ... ...

PI = 1.35

STEP 3: Convert Result to Output's Unit

1.35 --> No Conversion Required

FINAL ANSWER

1.35 <-- Profitability Index (PI)

(Calculation completed in 00.020 seconds)

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Profitability Index Formula

LaTeX Go

Profitability Index (PI) = (Net Present Value (NPV)+Initial Investment)/Initial Investment
PI = (NPV+Initial Invt)/Initial Invt

How to Calculate Profitability Index?

Profitability Index calculator uses Profitability Index (PI) = (Net Present Value (NPV)+Initial Investment)/Initial Investment to calculate the Profitability Index (PI), Profitability Index (PI) is the ratio of payoff to the investment of a proposed project. Profitability Index (PI) is denoted by PI symbol.

How to calculate Profitability Index using this online calculator? To use this online calculator for Profitability Index, enter Net Present Value (NPV) (NPV) & Initial Investment (Initial Invt) and hit the calculate button. Here is how the Profitability Index calculation can be explained with given input values -> 1.35 = (700+2000)/2000.

FAQ

What is Profitability Index?

Profitability Index (PI) is the ratio of payoff to the investment of a proposed project and is represented as PI = (NPV+Initial Invt)/Initial Invt or Profitability Index (PI) = (Net Present Value (NPV)+Initial Investment)/Initial Investment. Net Present Value (NPV) is a method of determining the current value of all future cash flows generated by a project after accounting for the initial capital investment & The Initial Investment is the amount required to start a business or a project.

How to calculate Profitability Index?

Profitability Index (PI) is the ratio of payoff to the investment of a proposed project is calculated using Profitability Index (PI) = (Net Present Value (NPV)+Initial Investment)/Initial Investment. To calculate Profitability Index, you need Net Present Value (NPV) (NPV) & Initial Investment (Initial Invt). With our tool, you need to enter the respective value for Net Present Value (NPV) & Initial Investment and hit the calculate button. You can also select the units (if any) for Input(s) and the Output as well.

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