Profitability Index Calculator
Result
Profitability Index Calculator Calculate the profitability index (PI) for capital budgeting. — free online calculator.
Formula
- Profitability Index Calculator calculates its result from Net Present Value (NPV), Initial Investment. It uses the formula PI = (NPV + Initial Investment) / Initial Investment. Change any input to recalculate the result instantly.
- The main inputs are Net Present Value, Initial Investment. Enter them in the units and format shown in the calculator.
- Use monetary amounts, rates and time periods exactly as labeled; the result reflects the assumptions entered on this page.
- Changing any input above recalculates the result with the same calculation engine used by this page.
Example: Profitability Index
- Net Present Value: 50000 NPV
- Initial Investment: 100000
Using Net Present Value (NPV) = 50000, Initial Investment = 100000, the calculated result is 1.5.
Sample result: Calculating…
Frequently asked questions
What does the Profitability Index calculate?
Profitability Index Calculator Calculate the profitability index (PI) for capital budgeting. — free online calculator.
Which values should I enter?
Enter Net Present Value, Initial Investment using the units and format shown beside each field.
What formula does this calculator use?
The calculator uses the following relationship: PI = (NPV + Initial Investment) / Initial Investment.
Why might my result differ from another source?
Results can differ when another source uses different units, rounding rules, conventions or assumptions. Compare the inputs and definitions before comparing results.
Does the result update automatically?
Yes. Changing an input updates the result using the same calculation engine shown on this page.