How To... Calculate ROI and Payback in Excel 2013

Learn how to calculate Return on Investment (ROI) and Payback using discounted benefits and discounted costs in project selection. This is a financial tool that you can use to compare two or more projects to help in decision making.
This is the second part of two videos that show you how to calculate Net Present Value (NPV), ROI, and Payback. If you want to learn how to calculate NPV using discounted data, see my video at:
• How To... Calculate Ne...

[@cdragon88]

This might sound stupid but where does the "benefit" numbers come from?

[@rw3092]

I've always wanted to learn about this. Very straight forward. Thank you very much!!

[@khalidadwy]

Hi how to calculate irr in the same example

[@kanevivalakane3699]

For ROI calculations do we consider terminal value of project also?

[@aliciamichnowska1172]

Thank you so much, I spend hours looking for a good explanation, thank you again.

[@ushamemoriya5391]

can roi and npv ber negative?

[@lovedesai4629]

Question: We discount cash flows to take into account inflation (a dollar today is worth more than a dollar tomorrow concept), but then why do we discount costs as part of this? Wouldn't costs relatively increase in future periods because of "inflation", while benefits would decrease? Maybe i'm thinking about this the wrong way?...

[@tulpost1055]

thank you so much ,,,very simple and informative

[@raquelasirit5434]

Yeah where does the "benifit" numbers came from? Plesse sir answer me for my proposal project thank you

[@muhammadnawazseo3407]

thnku vry much sir vry helpful

[@ronnymiriti1191]

Hey Eugene. Thanks for the video, it was of great help. Could you kindly send me the template?

[@crahimi238]

How would you calculate discounted payback?

[@paulfrancoisidyndiaye8092]

Good morning and thanks a lot .how to calculate the discount factor?

[@tyblo004]

Hellow sir! nice video. may you send that exel tamplate to me?

[@ajazahmed4673]

Thank you so much sir. You made my all doubts cleared in just few minutes.

[@Gary-cc8oe]

Where to download the xls?

[@adinanibnmubarak1410]

I want the excel template, is it possible

[@Imranhossainbanglai]

Deae sir iss it possible to get your excel sheet for practice

[@thukumariga414]

Thank you Sir.

[@halildemir5962]

It would be more usefull to calculate the Payback preciesly aswell. Typing Year 4 is not a solution

[@avmediatechbrasil]

Dear Mr. Eugene. This is the best video I ever found about this subject. In addition to the proposed examples, lets say that I had to invest 50.000 in advance (CF0 in acquiring equipment’s for the first case). But this investment of capital is not part of the annual basis results. Plus, let’s say that the first year has a negative result, due to high marketing costs to launch the business in the marketplace aggressively. So, in this case, do I have to add this pre-investment to the costs of the year 1 anyway, or is there any other way to do that? I would really appreciate to get your reply. Right now I am trying to wrap up my own business plan, but surprisingly, nobody that I’ve talked with could solve that. Thank you very much. Fernando

[@avmediatechbrasil]

?

[@EugeneOLoughlin]

Hi +fernando oliveira. You will need to consult with a financial expert for advice. My knowledge area is Excel rather than finance. Dr E.

[@avmediatechbrasil]

That's fine. Thank's a lot. Fernando