How to Use NPV in Google Sheets and Excel: A Guide

1. Manual NPV workflows in Excel & Google Sheets

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Method 1: Simple NPV in Excel with one-off cash flows

1. List your cash flows in a single column, e.g., B2:B7.
   • B2: discount rate (e.g., 0.10 for 10%).
   • B3: initial investment as a negative number (e.g., -40000).
   • B4:B7: annual net cash inflows (e.g., 8000, 9200, 10000, 12000).
2. In another cell (say, B9) enter:
   • =NPV(B2,B4:B7)+B3 This follows Microsoft’s guidance that the initial outlay (time 0) is added after the function.
3. Interpret the result:
   • Positive NPV: project creates value.
   • Negative NPV: project destroys value versus your discount rate.
4. Official Excel docs: https://support.microsoft.com/en-us/office/npv-function-8672cb67-2576-4d07-b67b-ac28acf2a568

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Method 2: Project comparison in Excel with multiple scenarios

1. Create a table: one column per project (e.g., C for Project A, D for Project B).
2. Put the same time structure (Year 0, Year 1, etc.) down the rows.
3. Enter cash flows for each project.
4. For each project, calculate NPV below the column, e.g. =NPV($B$2,C4:C8)+C3.
5. Compare NPVs to decide which project or campaign to prioritize.

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Method 3: NPV in Google Sheets for marketing or sales funnels

1. In Sheets, set up columns:
   • Column A: period (Month 0, 1, 2, ...).
   • Column B: net cash flow per month (negative for spend, positive for revenue).
   • Cell E1: discount rate (e.g., 0.08).
2. Use Sheets’ NPV function:
   • In E3: =NPV(E1, B2:B13) + B1 Again, follow the same pattern: initial investment (B1) is added outside the function.
3. Example and syntax from Google: https://support.google.com/docs/answer/3093143

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Method 4: Manual present-value-by-period check (either app)

1. To audit the black-box feel of NPV, add helper columns:
   • Column C: period number (0,1,2,...).
   • Column D: present value: =B2 / (1+$E$1)^C2.
2. Sum Column D to manually confirm the NPV function’s math.
3. This transparency is critical when presenting to investors or finance leaders.

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Method 5: Using XNPV/XIRR where timings are irregular (Excel)

1. If your cash flows don’t happen on clean periods (e.g., invoices on random dates), use XNPV.
2. Set up:
   • Column A: actual dates.
   • Column B: cash flows.
   • Cell E1: annual discount rate.
3. Use:
   • =XNPV(E1,B2:B20,A2:A20)
4. Docs: https://support.microsoft.com/en-us/office/xnpv-function-1b42bbf6-370f-4532-a0eb-d67c16b664b7

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2. No‑code automation with spreadsheet tools

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No-code Flow 1: Google Sheets + built-in triggers

1. Build an “NPV Dashboard” sheet that references raw data tabs (e.g., Ad Spend, MRR, Churn).
2. Use formulas like =NPV(rate,range)+initial_cash_flow on your dashboard.
3. Add Apps Script triggers (no deep coding, just simple setup):
   • In Google Sheets: Extensions → Apps Script.
   • Paste a simple script that refreshes data imports (or calls external APIs), then recalculates.
   • Set a time-driven trigger (e.g., daily at 7am) so NPV is always fresh.
4. Docs: https://developers.google.com/apps-script/guides/triggers

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No-code Flow 2: Excel + Power Query + refresh

1. Use Power Query to pull cash flow data from CSVs, databases, or web sources into Excel.
2. Build your NPV formulas on top of the refreshed tables:
   • =NPV(rate,Table[CashFlowRange])+initial_outlay.
3. Set the workbook to refresh queries on open, or use a scheduled refresh if stored in OneDrive/SharePoint.
4. This gives non-technical teams a nearly live NPV model without hand-copying data.

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No-code Flow 3: Zapier/Make + Sheets or Excel Online

1. Trigger: New deal won in CRM, new subscription in Stripe, or completed order in your ecommerce stack.
2. Action: Append a row to Google Sheets or Excel Online with date, cash flow, and category.
3. Your sheet’s NPV cells update automatically.
4. Result: operations, sales, and finance can see real-time project NPV without touching formulas.

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3. Scaling NPV with an AI agent (Simular)

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Agent Method 1: AI-driven NPV scenario testing What it does: A Simular AI agent behaves like a power analyst who never gets tired.

1. You design one “master” NPV model in Excel or Sheets.
2. Provide a prompt or checklist to the agent:
   • Open file from shared drive.
   • Duplicate the “Base Case” sheet.
   • For each scenario (e.g., High CAC, Low CAC, Aggressive Hiring), adjust defined input cells.
   • Recalculate and log NPV into a summary tab or Google Sheet.
3. The agent executes clicks, keystrokes, and navigation across desktop, browser, and cloud apps.

Pros:

• Massive time savings when you have dozens of campaigns or markets.
• Production-grade reliability; the agent follows the same steps every time.
• Transparent execution: you can inspect and modify every action.

Cons:

• Requires initial setup of a clean model and well-written instructions.
• Best for recurring workflows, not one-off experiments.

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Agent Method 2: End-to-end data collection + NPV reporting What it does: Instead of you downloading CSVs from ad platforms, CRMs, and billing tools, your agent does it.

1. Agent logs into your marketing platforms, exports performance and revenue data.
2. It cleans and merges data into a Google Sheet or Excel table (e.g., standardized columns for dates and cash flows).
3. Then it applies the correct NPV or XNPV formula, updates charts, and emails or Slacks a snapshot to stakeholders.

Pros:

• Removes error-prone manual data prep.
• Works across browser, desktop Excel, and Google Sheets in a single workflow.
• Easy to plug into your existing reporting cadence via webhooks.

Cons:

• Needs initial access configuration and security review.
• You still own the financial assumptions (discount rate, forecast logic).

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Agent Method 3: Continuous monitoring of project NPV What it does: Treats NPV like a KPI, not a once-a-year model.

1. Schedule the AI agent to run daily or weekly.
2. It refreshes data sources, opens your latest spreadsheets, recalculates NPVs, and highlights projects whose NPV has dropped below zero.
3. It writes a short narrative summary—“Campaign B is now negative NPV due to higher CAC; consider pausing low-ROAS ad sets”—based on the updated numbers.

Pros:

• Turns static models into a living decision system.
• Gives sales, marketing, and leadership an always-current view of where capital should go.

Cons:

• You must keep model logic (cash-flow rules) up to date.
• Requires clear thresholds so the agent knows what to flag.

For official formula references, rely on:

• Excel NPV docs: https://support.microsoft.com/en-us/office/npv-function-8672cb67-2576-4d07-b67b-ac28acf2a568
• Google Sheets NPV docs: https://support.google.com/docs/answer/3093143