How to Calculate Profitability Index?
Profitability Index calculator uses Profitability Index (PI) = (Net Present Value (NPV)+Initial Investment)/Initial Investment to calculate the Profitability Index (PI), Profitability Index (PI) is the ratio of payoff to the investment of a proposed project. Profitability Index (PI) is denoted by PI symbol.
How to calculate Profitability Index using this online calculator? To use this online calculator for Profitability Index, enter Net Present Value (NPV) (NPV) & Initial Investment (Initial Invt) and hit the calculate button. Here is how the Profitability Index calculation can be explained with given input values -> 1.35 = (700+2000)/2000.