Ease of calculation: The calculator is created in a way that will require the least effort by simply providing you with the results without getting into complex calculations.The profitability index calculator will not only show you the index value, it will also give you the detailed version of it, which includes the net present value and the expected cash flows of a project. Why use a calculator to access your profitability index Expected cash flows: This shows the total amount of expected cash flows during the entire life cycle of the project in question.Net present value: This represents the total difference between the present value of cash inflows and the present value of cash outflows over the life of a project.Profitability Index: As explained above, this will show you the ratio of profitability of the project.On the basis of the above inputs, the calculator will provide you with the following results:

Year: A different amount of expected cash flow for each year can be entered here.

Number of years: The number of years the project is expected to be completed, or life of the project.

Discount rate: The return on investment that can be earned on a project.

Initial Investment: Enter the amount of initial cost of a project.

Currency: This is an optional column to select if you want to result figures in a particular currency.

Let's see below what the iCalculator's profitability index calculator will ask you to do this calculation: In order to calculate the profitability index ratio you will require a calculator that can offer you quick results with a few inputs.

If you don't fancy calculating the present value manually, you can use the present value calculator here.

Profitability index