Home The project About the project Startups Events Trainings Calculators Internal rate of return Enterprise valuation Net Present Value Break-even point calculation Calculation of Net profit Calculation of EBIT Calculation of EBITDA Payback Period Discounted cash flows Return on Equity Efficiency Ratio Absolute liquidity ratio Financial autonomy Debt ratio Profitability Index Discussions Articles Contact us

Profitability Index

Net Present value

Initial investment

Result (Updates automatically)

The Profitability Index (PI) measures the ratio between the present value of future cash flows and the initial investment. The index is a useful tool for ranking investment projects and showing the value created per unit of investment.

The Profitability Index is also known as the Profit Investment Ratio (PIR) or the Value Investment Ratio (VIR).