Profitability Index Calculator
Calculate the profitability index (PI) to evaluate investment efficiency and capital allocation.
Important Financial Disclaimer
This calculator provides estimates based on standard financial formulas from verified references. Results are for informational and educational purposes only and should not be considered as professional financial, investment, or tax advice.
For important financial decisions such as loans, investments, mortgages, retirement planning, or tax matters, please consult with qualified financial advisors, certified financial planners, or licensed tax professionals who can review your specific situation.
Calculations may not account for all variables specific to your circumstances, local regulations, or current market conditions. Always verify results and consult professionals before making financial commitments.
Not a substitute for professional financial advice
Investment Details
Profitability Index (PI)
1.291
Accept: $0.29 created per $1 invested
PI Decision Rule
Profitability Index Formula
When to Use PI
Best for capital rationing when you need to rank projects by efficiency rather than absolute value.
PI vs NPV
PI shows value per dollar; NPV shows total value. Use NPV for mutually exclusive projects, PI for independent projects with limited capital.
Help us improve!
How would you rate the Profitability Index Calculator?
संबंधित कैलकुलेटर
sources
- •Reserve Bank of India (RBI) — Financial regulations, lending rates, and monetary policy guidelines. rbi.org.in
- •Consumer Financial Protection Bureau (CFPB) — Consumer finance guidelines, mortgage and loan disclosure standards. consumerfinance.gov
- •Securities and Exchange Board of India (SEBI) — Investment and securities market regulations. sebi.gov.in
- •Investopedia — Financial formulas, definitions, and educational content. investopedia.com
For a complete list of all references used across the site, visit our full sources page.
Editorial Note
MyCalcBuddy Editorial Team
This page is maintained as an educational calculator reference.
Formula Source: Fundamentals of Financial Management
by Brigham & Houston