Excel profitability index function

tadXL v2.5

104 new financial functions for Excel 2007, 2010 & 2013

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104 new financial functions for Excel 2007, 2010 and 2013.

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10 new financial functions for Excel 2007, 2010 and 2013.

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Find benefit to cost ratio of an investment

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Find discounted payback period of an investment

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Find equivalent annual annuity of an investment

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Find equivalent annual cost of an investment

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Find internal rate of return of an investment

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Find modified internal rate of return of an investment

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Find net future value of an investment

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Find net present value of an investment

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Find profitability index of an investment

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Find simple payback period of an investment

From The Author

Welcome to FTWE 100

FTWE 100 is the financial treasure web index that offers you a host of financial products and services making it possible to analyze investments. The FTWE 100 index allows an analyst to determine the investor's return on investment - ROI using the financial software tools that we offer. FTWE 100 enables financial analysts like you to make informed decisions on investments thus ensuring the profitability of your company or personal gains. The FTWE 100 index is an indicator of sound invesment based upon financial analysis resulting from the use of our software tools. Keep us bookmarked in your web browser as the tools that we offer are not found elsewhere and are one of a kind in financial industry.

Download FTWE 100 free software

As stated earlier the FTWE 100 index is the result of financial calculations that are made possible using the financial software products that we offer for free. All of our software tools may be downloaded for personal and corporate use, however the complete versions of these software products cost a nominal price that allows for more complex options when finding the FTWE 100 index. For more details on downloading and using these software products, follow the read more link to find your return on investment - ROI […]

Profitability index

The financial PI is an acronym for profitability index which is one of the many tools used by an analyst to perform investment analysis. The analyst is tasked with finding an investor's return on investment and the financial PI helps her in doing this task. The financial PI is a ratio of discounted profits over discounted expenses where the company's cost of capital is used as the discount rate for discounting the money amounts. Here I present you with a financial PI document as a Word file that will examine finding profitability index of an investment. It will provide the definition of financial PI giving you the formulas need to find the profitability index. It will also demonstrate example calculation of profitability index of an investment using sample data for an investment.

FREE download tadXL v2.5

You may go ahead and download tadXL v2.5 from the following download card. There are 104 financial functions in this add-in that allow finding return on investment, time value of money calculations, interest rates, and misc.

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Finding profitability index in Excel

Up until Excel 2013, there weren't any financial functions in Excel to find the profitability index or any of the other financial measures of return on investment - ROI. In March 2012, tadXL was launched offering a large set of financial functions for the Excel 2007, 2010 and 2013. None of these financial functions were available in Excel at least up till 2013. Not sure why but if Microsoft does indeed release its own set of financial functions for the upcoming Excel 2015 or 2016 then most likely these financial function would be copies of those that are already part of tadXL add-in. So what gives a big company such as Microsoft that has had the same old list of financial functions since 2000 has now decided to introduce new financial functions. Copyrights are protected by law, I assume Microsoft knows that so we will take a wait and see approach to find out what they cooking up in Redmond, Washington for the next version of Excel 2015 or 2016.

Using tadXL functions such as tadPI, tadPISchedule, tadXPI and tadXPISchedule finding profitability index in Excel 2007, 2010 and 2013 becomes really easy. Let us now briefly look at each of these three financial functions in tadXL to find financial PI using Excel:

=tadPI( rate, cash_flows, type, compounding, period, distribution )
=tadPISchedule( rates, cash_flows, type, compounding, period, distribution )
=tadXPI( rate, cash_flows, dates, type, compounding, period, distribution )
=tadPISchedule( rates, cash_flows, dates, type, compounding, period, distribution )

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