How to use this calculator
- Enter present value of future inflows, initial investment.
- Choose a display currency, then select Calculate. Results also update after a brief pause while you edit.
- Read the result with the assumptions below. Export details or save a second scenario to compare your choices.
Formula and method
Profitability index=PV of future inflows/initial outlay.
Assumptions and limitations
Future flows must already be discounted consistently; ranking ratios can mislead when project sizes differ.
Worked example
With present value of future inflows = 12000, initial investment = 10000, profitability index is approximately 1.2.
What the result means
Above one indicates positive NPV for the supplied present-value estimate.
Common questions
How should I interpret profitability index?
Above one indicates positive NPV for the supplied present-value estimate.
What should I check before using this result?
Future flows must already be discounted consistently; ranking ratios can mislead when project sizes differ.
Methodology and transparency
Calculation specification reviewed on 2026-10-14. Mathematical implementation is tested against independent reference fixtures. This does not imply review by a licensed financial professional. Read the testing and precision policy.