Finance

Profitability Index Calculator

PI = present value ÷ investment.

Calculated Output

Profitability index 1.25

Step-by-Step Breakdown

1. Values used:

2. PV of future cash flows = 25,000 $

3. Initial investment = 20,000 $

4. Profitability index = PV of future cash flows / Initial investment = 25,000 / 20,000 = 1.25

Did this calculator solve your problem today?

Frequently Asked Questions

Vs NPV?

PI normalizes by investment size, making projects comparable.