XNPV Function in Google Sheets: Explained

In this article, you will learn how to use the XNPV formula in Google Sheets.

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What is the XNPV function in Google Sheets?

The XNPV function in Google Sheets calculates the net present value (NPV) of a series of cash flows, given a specific interest rate. This function is similar to the NPV function but allows you to specify a different date for the start of the investment period.

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How to use the XNPV formula in Google Sheets

The syntax for the XNPV function is as follows:

=XNPV(rate, values, dates)

rate is the interest rate per period.

values is a range of cells that contain the cash flows for each period.

dates is a range of cells that contain the dates for each cash flow.

The cash flows in the values range must be in the same order as the dates in the dates range. The rate and values arguments must be the same length.

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For example, if you wanted to calculate the NPV of a series of cash flows starting on January 1, 2022, with an interest rate of 5%, you could use the following formula:

=XNPV(5%, B1:B5, A1:A5)

This would calculate the NPV of the cash flows in cells B1:B5, using the corresponding dates in cells A1:A5, and a 5% interest rate.

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What is the difference between NPV and XNPV in Google Sheets?

The NPV and XNPV functions in Google Sheets are similar, but there is one key difference between them: the NPV function assumes that the first cash flow occurs at the beginning of the investment period, while the XNPV function allows you to specify a different date for the start of the investment period.