basic

Profitability Index (Benefit-Cost Ratio) Calculator

PI = (NPV + C0) / C0 = PV of cash flows / investment.

Calculates the Profitability Index (PI) or Benefit-Cost Ratio from initial investment and present value of future cash flows.

Priya Venkatesan By Priya Venkatesan
Published Last reviewed 1 min read

Inputs

Results

Enter values and click Calculate to see results.
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How to use this calculator

  1. Fill in the inputs above using the units you already have.
  2. Values update automatically as you type — no submit button needed.
  3. Hover any result row for the underlying formula and intermediate values.

Formula

PI = PV_cashflows / C0; PI > 1 → accept project

In depth

Calculates the Profitability Index (PI) or Benefit-Cost Ratio from initial investment and present value of future cash flows.