NAV Calculator
Calculate net asset value (NAV) and NAV per share for investment funds using fund assets, liabilities, and shares outstanding.
Net Asset Value (NAV) for Investment Funds
The net asset value (NAV) is the total market value of an investment fund's assets minus its liabilities. It represents the per-share value of a mutual fund, exchange-traded fund (ETF), or closed-end fund and is calculated at the end of each trading day. NAV is the price at which investors buy and sell shares of open-end mutual funds.
To calculate NAV, add up all fund assets (total investments, cash and cash equivalents, accounts receivable) and subtract all fund liabilities (short-term and long-term liabilities). The result is the fund's net asset value. Divide by the number of shares outstanding to get the NAV per share, which represents the fair value of each share in the fund.
NAV is essential for evaluating fund performance over time. By comparing NAV per share at different points in time, investors can assess whether the fund's investments have appreciated or depreciated. A rising NAV per share generally indicates good investment performance, while a declining NAV may signal poor returns.
For more investment analysis tools, check our Earnings Per Share Calculator and Dividend Yield Calculator.
Frequently Asked Questions
What is net asset value (NAV)?
Net asset value (NAV) is the difference between a fund's total assets and its total liabilities. It represents the fair market value of one share of the fund. For open-end mutual funds, NAV is the price at which shares are bought and sold.
How do you calculate NAV per share?
NAV per share is calculated by subtracting total liabilities from total assets to get NAV, then dividing by the number of shares outstanding. The formula is: NAV per Share = (Total Assets - Total Liabilities) / Shares Outstanding.
What is the difference between NAV and market price?
NAV represents the fair value of a fund's underlying assets minus liabilities, while market price is what investors are willing to pay for shares on an exchange. For closed-end funds and ETFs, market price can differ from NAV due to supply and demand. When market price exceeds NAV, the fund trades at a premium; when it is below NAV, it trades at a discount.
Is NAV a good metric for measuring fund performance?
Yes, NAV is an excellent metric for analyzing fund performance. By comparing NAV per share between two dates, investors can calculate the fund's return. A rising NAV over time indicates the fund's investments are growing in value, while a falling NAV suggests poor performance.
What types of funds use NAV?
NAV is used by mutual funds (both open-end and closed-end), exchange-traded funds (ETFs), unit investment trusts (UITs), and other pooled investment vehicles. Open-end funds always trade at NAV, while closed-end funds and ETFs may trade at premiums or discounts to NAV.
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