Net Asset Value Formula

Formula to Calculate Net Asset Value (NAV)

Net asset value formula is mainly used by the mutual funds order to know the unit price of specific fund at the specific time and according to the formula net asset value is calculated by subtracting the total value of the liabilities from the total value of assets of the entity and the resultant is divided by the total number of the outstanding shares.



If you have ever invested in mutual funds, you will repeatedly hear one term. It is NAV. The full form of NAV is Net Asset Value. It is the difference between the assets and the liabilities.

Let’s have a look at the formula of net asset value.

NAV = (Market Value of Securities held by the fund + Cash & Equivalent Holdings – Liabilities of the funds) / Number of Outstanding Shares

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For eg:
Source: Net Asset Value Formula (


You can download this Net Asset Value Excel Template here – Net Asset Value Excel Template

Onus Fund has the following information. You need to find the NAV of this fund –

  • Market Value of Securities held by the fund – $450,000
  • Cash & Equivalent Holdings – $50,000
  • Liabilities of the funds – $200,000
  • Number of Outstanding Shares – 10,000

By using the formula of NAV, we get –

  • Net Asset Value = (Market Value of Securities Held by the mutual/close-end fund + Cash & Equivalent Holdings – Liabilities of the fund)/Number of Outstanding Shares
  • Or,  = ($450,000 + $50,000 – $200,000) / 10,000
  • Or, = $300,000 / 10,000 = $30 per share.


Use and Relevance

Let’s say that you would like to invest in a mutual fundMutual FundA mutual fund is a professionally managed investment product in which a pool of money from a group of investors is invested across assets such as equities, bonds, etcread more. What would you look for?

Many financial analysts argue that it is wiser to look at NAV rather than looking at the individual market price of the share. Here’s why.

  • They think that when you look at NAV of funds, you get the misconception that NAV dictates the future benefit of the fund. This, according to them, is utterly false.
  • That’s why these financial analysts mention that you should look for the quality of funds and not the NAV. Yes, NAV is important, but as an investor, you shouldn’t put too much faith in the higher or lower NAV because that doesn’t make any difference in how much return the portfolio under the fund would generate.
  • Suppose you want to take advantage of higher returns, select industries that have been growing much faster than the other industries. Let’s say if you choose to invest in the IT industry instead of other industries, you will be able to generate much higher returns on your investments.

Net Asset Value Calculator

You can use the following NAV Calculator.

Market value of Securities Held by the Fund
Cash & Equivalent Holdings
Liabilities of the Fund
Number of Outstanding Shares
Net Asset Value Formula =

Net Asset Value Formula =
Market value of Securities Held by the Fund + Cash & Equivalent HoldingsLiabilities of the Fund
Number of Outstanding Shares
= 0

Net Asset Value Calculation in Excel (with excel template)

Let us now do the same example above in Excel.

This is very simple. You need to provide the Four inputs of Market Value of Securities held by the fund, Cash & Equivalent Holdings, Liabilities of the fund’s Number of Outstanding SharesNumber Of Outstanding SharesOutstanding shares are the stocks available with the company's shareholders at a given point of time after excluding the shares that the entity had repurchased. It is shown as a part of the owner's equity in the liability side of the company's balance more.

You can easily calculate the net asset value in the template provided.

NAV in Excel

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This has been a guide to Net Asset Value Formula. Here we learn how to calculate net asset value using its formula along with practical examples, a calculator, and a downloadable excel template. You may also have a look at these articles below to learn more about Financial Analysis.

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