Profitability Index Calculator
Result
Profitability Index 1.5000
Decision Accept (PI > 1)
Calculate the profitability index (PI) for capital budgeting.
Formula
PI = (NPV + Initial Investment) / Initial Investment
- PI = (NPV + Initial Investment) / Initial Investment — for reference only.
Profitability Index Calculator
Profitability Index Calculator calculation.
Frequently asked questions
How is Profitability Index Calculator calculated?
PI = (NPV + Initial Investment) / Initial Investment